21st Aug 2025 09:51
Premier Foods PLC - St Albans, Hertfordshire-based maker of branded and non-branded food - Agrees to acquire "premium, healthy, convenient meals brand" Merchant Gourmet, which it says has a market-leading position in pulses and grains, a strong track record of profitable sales growth, and a broad consumer base with very strong repeat rates, and a track record for new category expansion. Premier will buy Merchant Gourmet for a GBP48.0 million enterprise value, meaning including debt. It says this represents a high single-digit multiple to adjusted earnings. Merchant Gourmet is projected to book GBP28 million in revenue in the financial year ending March 28, 2026. Premier thinks the acquisition will be earnings accretive within the first full year of ownership. It expects to complete the deal on September 1.
"We're very pleased to have agreed the acquisition of Merchant Gourmet, which meets the growing demand for premium, healthy and convenient meal options," says Chief Executive Alex Whitehouse. "Replicating the success of our previous two acquisitions, The Spice Tailor and FUEL10K, we will be deploying our proven branded growth model; expanding retailer distribution, accelerating new product development, and increasing marketing investment to unlock further profitable growth for the brand."
Current stock price: 188.98 pence, up 1.2% in London on Thursday
12-month change: up 7.3%
By Tom Waite, Alliance News editor
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