Press Room
February 8, 2011
Mitsubishi Corporation Subsidiary Princes Limited Proposed Acquisition of Premier Foods Plc’s Canned Grocery Operations
We are pleased to announce that Princes Limited (Princes), a 100% subsidiary of Mitsubishi Corporation (MC), has entered into a conditional agreement to acquire the canning operations of Premier Foods Plc (Premier Foods).
1. Reasons for Acquisition
Through its food and drink business which spans a wide variety of fields from the procurement of raw materials through to the consumer market, MC provides goods and services which are closely linked to people’s everyday lives both in Japan and around the world.
Since coming under the management of MC in 1989, Princes has successfully shifted its business model towards achieving enhanced manufacturing capacity. This has helped the company to expand and develop a reputation as a reliable provider of competitive products in a range of fields including canned goods, processed foods, cooking oil and soft drinks. Today, Princes has established itself as the cornerstone of MC’s European food business.
Through the proposed acquisition of major UK food company Premier Foods’ canned grocery operations, Princes will be able to complement and strengthen its existing business while offering a wider range of ambient food products. This proposed acquisition is an important step as Princes continues to target growth in the UK and mainland Europe.
2. Details of Proposed Acquisition
Princes has entered into a conditional agreement to acquire Premier Foods’ canned operations in the UK (sales of £334m – year ended 2010). Under the terms of the proposed agreement this will include acquisition of:
① Premier Foods’ owned brands such as Fray Bentos and Crosse & Blackwell.
② Two UK based factory sites and all associated fixed assets.
③ All remaining inventories of raw materials and finished products.
3. Approximate Acquisition Value
24 billion yen (£182 million)
4. Timeframe
The agreement was concluded on February 7, 2011. Subject to approval at a general meeting of Premier Foods’ shareholders, the consent of Premier Foods’ lending banks and regulatory approval, integration of acquired assets is scheduled to take place this spring.
5. Princes Press Release
Please see attachment file.
6. Company Profiles
1) Princes Limited
Head Office
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Liverpool, UK
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Established
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1880 (Acquired by MC in 1989)
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Capital
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£7million
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Business
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Manufacture and sale of foodstuffs
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Products
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Ambient processed foods (canned goods, cooking sauces, cooking oil, pasta), soft drinks (fruit juice, carbonates drinks, squashes, mineral water).
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Shareholding
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Mitsubishi Corporation 90%Mitsubishi Corporation International (Europe) Plc 10%
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Sales
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Approx. 142 billion yen(£1.093 billion (as of Match 2010))
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Locations
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11 UK based factories, 2 overseas facilities (after acquisition)
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Employees
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3,462 people (as of December 2010)
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Representative
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Mr Kazuo Ito(Chairman)
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2)Premier Foods Plc
Head Office
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St. Albans, UK
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Established
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1999
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Capital
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£1.125 billion
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Business
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Production and sale of foodstuffs
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Products
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Grocery – ambient grocery products; Hovis – wrapped bread and morning products and bulk and bagged flour; and Chilled –retailer branded chilled ready meal and cakes (as of January 2011).
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Sales
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Approx. 334billion yen (£2.611 billion (as of December 2009))
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Employees
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Approx 16,000 people (as of December 2009)
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Representative
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Robert Schofield (CEO)
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Inquiry Recipient
Mitsubishi CorporationTelephone:+81-3-3210-2171 / Facsimile:+81-3-5252-7705