FOOD group Princes has announced a deal in Italy that it says will pave the way for further international growth.

Princes, based in the Royal Liver Building, has exchanged contracts with long-term Italian tomato supply partner AR Industrie Alimentari (ARIA) to create a new company in Italy, Princes Industrie Alimentari (PIA).

PIA, which will be 51% owned by Princes, will take on ARIA’s 120,000 sq metre processing factory in Foggia, Italy that processes tomatoes and other products.

It is expected to generate sales of more than 200m euros and will employ up to 1,200 people at its seasonal peak.

Princes says the joint venture will also allow it to grow its Napolina brand further.

Managing director Ken Critchley said: “This is a significant development for our group and an important step in our strategy for further international growth. 

“PIA creates new partnerships for our business and broadens our access to new customers and markets. The company will continue to support the agricultural community in Italy by developing strong relationships with local growers and suppliers.”

The deal will complete within months, subject to regulatory approval.

It follows Princes’ purchase of  two major canning sites at Long Sutton and Wisbech, in East Anglia. Those acquisitions, along with PIA, are expected  to take Princes’ annual sales to more than £2bn.