New Princes Group has struck a €120m deal to acquire Kraft Heinz’s Italian baby food and nutrition arm, marking a major step in the newly formed food giant’s European expansion.

The acquisition will see New Princes gain ownership of household brands including Plasmon, Nipiol, BiAgut, Aproten and Dieterba, as well as a dedicated manufacturing facility employing 300 staff.

The new purchase aims to deepen the group’s presence in Italy’s baby and specialist food sectors and builds on a previous 2015 deal with Kraft Heinz for its infant formula factory in the country.

New Princes, created following Newlat’s £700m takeover of Princes in mid-2024, described the deal as a “strategic milestone” that complements its broader ambitions to build a multinational food group rooted in Italy.

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“Bringing home brands like Plasmon, Nipiol, BiAglut, Aproten, and Dieterba fulfils a vision we have pursued for years, to create an Italian multinational company that gives new life to beloved national brands with deep roots in our country’s identity,” said Chairman Angela Mastrolia

Kraft Heinz president of Europe and Pacific Developed Markets Willem Brandt added the sale would allow the FMCG giant to “fuel investment and growth in our core areas” while sharpening its focus on long-term value creation.

The baby food acquisition adds to a flurry of recent activity from New Princes, whose portfolio includes popular brands such as Branston, Flora and Princes. In May, the company revealed it was exploring a possible London IPO following its purchase of Princes, which brought major grocery brands such as Napolina, Naked and Princes tuna under its wing.

New Princes also recently snapped up Diageo’s Italian operations, including a 350-employee factory producing both alcoholic and non-alcoholic ready-to-drink beverages.

The group has since been split into two core divisions: a €350m milk and dairy unit and a €2.45bn food and drinks business, which New Princes expects to grow to €3bn in sales by the end of 2025.