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).

 

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.

 

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.

 

24 billion yen (£182 million)

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	Liverpool, UK
Established	1880　（Acquired by MC in 1989）
Capital	£7million
Business	Manufacture and sale of foodstuffs
Products	Ambient processed foods (canned goods, cooking sauces, cooking oil, pasta), soft drinks (fruit juice, carbonates drinks, squashes, mineral water).
Shareholding	Mitsubishi Corporation 90％Mitsubishi Corporation International (Europe) Plc 10％
Sales	Approx. 142 billion yen（£1.093 billion　（as of Match 2010））
Locations	11 UK based factories, 2 overseas facilities (after acquisition)
Employees	3,462 people (as of December 2010)
Representative	Mr Kazuo Ito（Chairman）

 

２）Premier Foods Plc

Head Office	St. Albans, UK
Established	1999
Capital	£1.125 billion
Business	Production and sale of foodstuffs
Products	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).
Sales	Approx. 334billion yen （£2.611 billion (as of December 2009））
Employees	Approx 16,000 people (as of December 2009)
Representative	Robert Schofield　（CEO）