Newlat, the Italy-based food group, is considering snapping up another business in the UK.
The bakery, dairy and pasta supplier, which already owns UK group Symington’s, disclosed its potential interest in another deal in a stock-exchange filing detailing new investment in its business.
Newlat has sold a shareholding of just under 8.9% to a group of institutional investors hedge fund Helikon Investments.
Under the terms of the transaction, the investors also have the option of buying some of Newlat’s treasury shares.
In the filing, Newlat said the deal was part of its efforts to support its “external growth strategy”, which includes M&A.
The company added: “Newlat Food is currently engaged in evaluating various potential acquisitions, including that of a leading UK company with a turnover of over £1bn.”
Just Food has approached Newlat for further comment.
In March, chairman Angelo Mastrolia revealed the company is “involved in some highly important sale processes”.
The most recently disclosed acquisition made by Newlat was the €20m purchase of France-based EM Foods from privately-owned Dr. Oetker last year.
In 2021, the company snapped up Symington’s, the UK manufacturer behind brands including Mug Shot, Naked, Ilumi, Chicken Tonight and Ragu.
Newlat’s 2022 results included EBIT of €20.1m – versus €17.1m in 2021 – and net income of €6.6m, against €6.2m a year earlier.
Consolidated revenues stood at €741.1m, an increase of 18.5% on 2021.
In the first quarter of 2023, the company’s revenues were up 25.3% at €207.3m. EBIT almost doubled to €9.8m. Net profit more than doubled to €6.4m.
