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NewPrinces is acquiring Carrefour’s operations in Italy for €1bn ($1.18bn) in a move described as “vertical integration between production and distribution”.
The Italy-headquartered food and drinks giant said Carrefour’s store network in the country stretches across more than 1,000 sites in regions such as Piedmont, Lombardy and Liguria.
Subject to regulatory approval, NewPrinces added the deal is expected to close by the end of the current third quarter.
Carrefour is the latest acquisition target by NewPrinces, which was trading as Newlat Food before it acquired UK-based Princes Group last year. More recently, the company has entered an agreement to buy a clutch of baby-food brands in Italy from US heavyweight Kraft Heinz.
“The acquisition of Carrefour Italia represents a significant milestone in our group’s growth trajectory,” Angelo Mastrolia, the chairman of NewPrinces, said in a statement.
“With this transaction, we are taking a decisive step towards vertical
integration between production and distribution, strengthening our ability to create value along the entire supply chain.”
Mastrolia added: “We have made the bold decision to invest in a strategic asset for Italy, with the aim of relaunching a widespread retail network and maximising synergies between industry and distribution.
“Our ambition is clear: to build a sustainable, solid and long-term model that can offer concrete benefits to customers, employees, suppliers and shareholders alike.”
As part of the transaction, NewPrinces said Carrefour has committed to reinvest €237.5m in its Italian stores in a “one-off contribution” to support the retailer’s “industrial relaunch and operational continuity”.
Meanwhile, NewPrinces has pledged €200m to invest in “development initiatives, logistics innovation and brand renewal”.
Carrefour acknowledged the agreement with the Italian group in its full year 2025 results yesterday (24 July). The retailer said its stores in Italy had gone through a “recovery” period from 2020 to 2022 but sales then declined last year.
The same year, Carrefour Italia booked a €67m loss in recurring operating income and had negative free cash flow of €180m.
“This operation covers all of Carrefour’s activities in Italy. It will allow Carrefour to refocus on its key markets in Europe and Latin America,” the France-based retailer said.
With the deal, the owner of the Princes, Napolina and Delverde brands said it aims to “optimise synergies” between production and distribution and “enhance” its brand portfolio.
NewPrinces also hopes to “develop new omnichannel platforms” for the sale and delivery of fresh and packaged products and “strengthen” its position in “key” European markets.
The company added that the Carrefour stores in Italy generated around €3.7bn in sales last year and EBITDA of €115m. Post the transaction, the pro-forma consolidated turnover of the food and drinks group will reach circa €6.9bn, it said.
In the first quarter of 2025, NewPrinces generated revenues of €672.2m, a dip from the €699.9m made in the corresponding period of 2024. EBIT stood at €28.9m, against €5.9m a year earlier. NewPrinces booked a first-quarter net profit of €13.5m, versus a loss of €2.2m the year previous.
Aside from the agreement with Carrefour, NewPrinces is reportedly considering floating the UK Princes unit on the London market in October.
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