All NewPrinces plans (after Carrefour Italia) blessed by Intesa Sanpaolo
NewPrinces' numbers. The Carrefour Italia deal. The next steps. And the stock market reaction. Facts, numbers, and insights (with a report from Intesa Sanpaolo)
NewPrinces' acquisition campaign, which in just one year has seen it grow from a turnover of 750 million to 6.9 billion euros, may not stop at Carrefour Italia , which analysts consider a more difficult pill to swallow, with the market having reacted negatively to the operation (the stock was suspended for much of the morning with a theoretical -15%).
THE WORDS OF CFO FAZZARI
"The M&A market is beyond our control. If we find an interesting opportunity, we'll pursue it. After three acquisitions this year, we have the financial profile to make more if opportunities arise," CFO Fabio Fazzari (pictured) said in the conference call presenting the acquisition announced yesterday evening.
All of New Princes' Moves on Kraft Heinz and Carrefour Italia
In early July, NewPrinces announced the acquisition of Kraft Heinz's Italian baby products business, including the Plasmon, Nipiol, and Aproten brands, after signing an agreement in June to purchase Diageo's Italian operations.
The agreement to acquire Carrefour Italia, the Italian subsidiary of Europe's leading food retailer, provides for an equity value of €1. Under the agreement, which also includes €420 million in real estate assets, as explained during the call, the enterprise value has been set at €1 billion.
EXCLUDING THE BOND
"If you pay one euro for a debt-free company, it's clear you don't incur debt," Fazzari said in response to a question during the call. Chairman Angelo Mastrolia ruled out the possibility that the Italian company would need to issue a bond to finance the revitalization plan for its large-scale retail network.
“600 MILLION EUROS IN DEPRECIATION”
Mastrolia, regarding the financial commitment, explained that "we will have €600 million in depreciation." Regarding the value of the Carrefour Italia stores, he noted that the French group had written them down "to zero after provisions, but they are worth €420 million." Asked about other parties interested in acquiring Carrefour Italia, Mastrolia said that "there was a lot of interest in the area up for sale, but the fact that we were interested in everything and could acquire it without antitrust risks played into our hands."
The closing “will take place in September and it is the right time to face October-November-December, the best period for a retail business,” added the president. “We are positive about generating a lot of cash flow.”
The acquired asset includes a network of over 1,000 stores in Italy, spread across densely populated regions (Piedmont, Lombardy, Liguria, Emilia Romagna, Lazio, and Tuscany), with formats ranging from convenience stores to large retail outlets, and a 4% market share in the consumer goods retail market.
THE INTESA SANPAOLO NOTE
"NewPrinces has a proven track record of M&A in the food sector, but Carrefour Italia represents a first step into the retail sector," Intesa Sanpaolo analysts noted. "The chain has long struggled to maintain profitability, having experienced structurally weak results for over a decade under its previous ownership. Despite multiple restructuring efforts (including footprint rationalization, cost reduction, and digital transformation), the company has remained burdened by inefficiencies, declining traffic, and exposure to an increasingly competitive market."
CARREFOUR ITALY'S NUMBERS
According to the NewPrinces press release, Carrefour Italy reported revenues of €3.7 billion and an EBITDA of €115 million in 2024. Carrefour also forecast a normalized operating loss of €60 million and a cash burn of €180 million in 2024.
The Carrefour Italia deal will not alter NewPrinces' plans for a potential listing of its production unit on the London Stock Exchange, as the new assets will be incorporated into another subsidiary, Fazzari explained in the call.
(Excerpt from Teleborsa)
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/newprinces-carrefour-italia-campagna-acquisizioni/ on Fri, 25 Jul 2025 14:05:15 +0000.