Premier Foods Builds M&a Profile With Merchant Gourmet Deal

2 weeks ago

Mr Kipling marque proprietor Premier Foods said it is paying £48m ($64.6m) for nan ready-to-eat products business.

Premier Foods has bounced backmost into nan M&A arena pinch nan acquisition of Merchant Gourmet, nan UK-based shaper of ready-to-eat products.

The proprietor of nan Batchelors noodles and soups marque is paying £48m ($64.6m) to get Merchant Gourmet successful a woody that is expected to adjacent connected 1 September, Premier Foods said successful a connection coming (21 August).

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to scope engaged professionals crossed 36 starring media platforms.

Find retired much

Merchant Gourmet produces branded ready-to-eat pulses and grains, microwaveable atom packs, and ready-meals. The business is projected to make £28m successful gross successful nan twelvemonth to 28 March, continuing its double-digit growth.

After a hiatus, Premier Foods returned to nan M&A market successful 2022 pinch nan acquisition of The Spice Tailor, which supplies ingredients packs to nutrient Asian-based meals astatine location and has precocious expanded pinch a Mexican offering.

Fuel10K, a shaper of snack bars, cereals and beverage drinks, was past added to nan portfolio successful 2023.

Premier Foods’ CEO Alex Whitehouse said: “We’re very pleased to person agreed nan acquisition of Merchant Gourmet, which meets nan increasing request for
premium, patient and convenient repast options.

“Replicating nan occurrence of our erstwhile 2 acquisitions…we will beryllium deploying our proven branded maturation model; expanding retailer distribution, accelerating new
product development, and expanding trading finance to unlock further profitable maturation for nan brand.”

Premier Foods, which besides owns nan Ambrosia and Sharwood’s brands, among others, added that Merchant Gourmet is “highly complementary” to its existing portfolio and is statement pinch its “growth strategy of acquiring brands wherever it tin adhd worth and present further growth”.

GlobalData Strategic Intelligence

Don’t fto argumentation changes drawback you disconnected guard. Stay proactive pinch real-time information and master analysis.

By GlobalData

Richard Peake, nan managing head of Merchant Gourmet, said: “Over nan past fewer years, our squad person worked incredibly hard, delivering double-digit gross maturation and demonstrating immense occurrence successful entering caller categories and caller markets.

“Finding nan champion location for some Merchant Gourmet and our weighted squad is thing we person thought cautiously about, and we judge Premier Foods is nan correct partner to lucifer our ambition.”

Merchant Gourmet’s 25 labor are each expected to transportation to Premier Foods.

The business presently uses third-party manufacturers. It supplies nan awesome nutrient chains Sainsbury’s, Tesco and Asda.

Premier Foods reported its first-quarter results successful July. Group income to nan extremity of June roseate 0.2% to £239.7m.

The business breaks down its results into market and saccharine treats. Sales gross for nan erstwhile fell 2.8% successful nan 4th to £174.4m. The branded conception wrong market fell 2.2% to £158.4m.

Sweet treats reported 9.1% wide income maturation to £65.3m.

For nan afloat 2024 financial year, Premier Foods posted a comparatively level income consequence of £1.15bn. Operating profit climbed 1.9% to £181.1m.

Both nett profit and diluted EPS roseate 11% to £124.9m and 14.1 pence, respectively.

Just Food Excellence Awards - The Benefits of Entering

Gain nan nickname you deserve! The Just Food Excellence Awards observe innovation, leadership, and impact. By entering, you showcase your achievements, elevate your manufacture profile, and position yourself among apical leaders driving nutrient manufacture advancements. Don’t miss your chance to guidelines out—submit your introduction today!

Nominate Now