Newlat Food to Acquire Diageo's Plant in Northern Italy
(Reuters) - Italy's Newlat Food has signed an exclusive agreement to buy a plant in northern Italy from the world's biggest spirits producer Diageo, it said on Tuesday.
In a separate statement late on Monday, Italy's industry ministry said Newlat had presented a binding offer for the factory, with pledges to retain its 349 workers, maintain production levels and develop products.
Diageo had announced plans to close the facility in December.
Newlat Chairman and CEO Angelo Mastrolia told Reuters the value of the agreement was subject to a confidentiality clause and would be disclosed after it is finalised. Diageo also did not provide details.
In a statement, Newlat said the deal would allow it "to complete and strengthen its offering in the drinks category".
The plant in Santa Vittoria d'Alba in the northwestern Piedmont region, produces "a wide range of alcoholic beverages, ready-to-drink products, and low and no alcohol products," Newlat said.
The "best in class" plant will offer Newlat the opportunity to expand in the spirits and non-alcoholic drinks sector, in particular within the private label and business-to-business segments, Mastrolia said.
The company is set to change its name to NewPrinces, after it in May last year bought British peer Princes, known for its tinned fish and Napolina sauces, for nearly 700 million pounds ($924.07 million).
($1 = 0.7575 pounds)
(Reporting by Philippe Leroy Beaulieu in Gdansk, editing by Alvise Armellini and Barbara Lewis)
