Newlat has signed an agreement to buy 46 per cent stake in dairy group Centrale del Latte d’Italia, creating the third biggest domestic operator in the sector.
According to reporting from Reuters, the owner of the Delverde pasta brand said it would buy the CLI stake from a group of shareholders. This includes top investor Finanziaria Centrale del Latte di Torino, at a price of 1 euro and 0.33 Newlatordinary shares for each CLI share.
Newlat will then launch a mandatory takeover bid on the remaining CLI shares at the same price. The CLI shareholders selling their stake will reinvest in Newlat by buying a 5.3 per cent shareholding.
Newlat, which produces pasta, bakery products and baby food, said that the acquisition will boost its revenue to 500 million euros ($533 million).
CLI produces and sells about 120 products including milk and its derivatives, with brands such as TappoRosso, Mukki, Tigullio and Vicenza. CLI recorded revenues of 180 million euros ($198.04 million) last year and core earnings of around 6 million euros.
Newlat said its revenues rose 5 per cent to 320 million last year driven by pasta and dairy products.
The company said on 19 March that in the first two weeks of that month, when Italians stocked up food products in response to concerns about coronavirus, it recorded a 35 per cent rise in sales compared with the same period last year.