Diageo has announced that it has accepted the–proposed-sale of Diageo Operations Italy S.p.A. to NewPrinces S.p.A. The transaction involves Italy-based Santa Vittoria production center.
NewPrinces is a market leader in the Italian food and drink sector that was once Called Newlat Food S.p.A. The sale would help the company to realize its objective of enhancing its global manufacturing facility within a bid to address the needs of consumers prevailing in various markets.
Santa Vittoria is one of the production sites of Diageo in Europe. This step demonstrates that the company Diageo is transforming its operations to follow the market. The company will allocate resources in a more efficient way by zeroing in the main areas.
Staff To Remain And Services To Be Added
With the deal, the employees of the Santa Vittoria facility will retain their jobs with the new owner. A type of service agreement on a fixed-term will remain intact even after the sale is concluded. This will assist Diageo and NewPrinces to collaborate in the smooth handover.
The objective is to ensure that business is operated normally during the process of transfer in ownership. According to Diageo, this will spell out stability and be supportive of the sustained provision of products.
Regulatory clearance is pending with regard to the deal. The project will be completed later in the year 2025.
Diageo is selling Italy operations in line with its move to streamline its production globally. Through such transformation, the company targets improved efficiency and flexibility in the manner in which it produces and delivers its products.
