Premier Foods has today (21 August) announced it has agreed to acquire Merchant Gourmet, the premium, healthy, convenient meals brand, as it “continues to deliver against its growth strategy,” it says.
The brand’s range of branded ready-to-eat pulses and grains, microwaveable rice and meals has lead to market leading positions in pulses and grains, with a strong track record of profitable sales growth, Premier says, and it considers the brand “highly complementary” to its existing portfolio.
It adds that it expects to “unlock significant value through leveraging its proven branded growth model.”
Alex Whitehouse, CEO of Premier, said: “We’re very pleased to have agreed the acquisition of Merchant Gourmet. Replicating the success of our previous two acquisitions, The Spice Tailor and Fuel 10k, we’ll 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.”
Richard Peake, MD of Merchant Gourmet, added: “Over the last few years, our team have worked incredibly hard, delivering double-digit revenue growth and demonstrating huge success in entering new categories and new markets.
“Finding the best home for both Merchant Gourmet and our valued team is something we’ve thought carefully about, and we believe Premier Foods is the right partner to match our ambition. They understand where we’ve come from, they respect what makes our brand special, and we’re excited to continue innovating boldly and inspiring people to fall in love with simple, good food.”
Premier Foods will acquire 100% of Merchant Gourmet for an enterprise value of £48m on a cash and debt free basis, it explains.
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