REG - Premier Foods plc Premier Foods Fin - Acquisition of Merchant Gourmet

Premier FoodsAnnouncement

21/08/2025 07:00

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RNS Number : 1732W  Premier Foods plc  21 August 2025

 

 

21 August 2025

Premier Foods plc (the "Company" or the "Group")

 

 Acquisition of Merchant Gourmet

Premier Foods today announces it has agreed to acquire Merchant Gourmet, a
premium, healthy, convenient meals brand, as the Group continues to deliver
against its growth strategy of acquiring brands where it can add value and
deliver further growth.

 Strategic highlights & opportunities

 

 ·      Premium and healthy branded ready-to-eat pulses and grains,
 microwaveable rice and meals in minutes
 ·      Market leading positions in pulses and grains, with a strong
 track record of profitable sales growth
 ·      Broad consumer base, exceptionally strong repeat rates and
 established track record of new category expansion
 ·      Highly complementary to Premier Foods' portfolio and aligned to
 the Group's acquisition strategy
 ·      Group expects to unlock significant value through leveraging its
 proven branded growth model

 

 Alex Whitehouse, Chief Executive Officer

 

"We're very pleased to have agreed the acquisition of Merchant Gourmet, which
meets the growing demand for premium, healthy and convenient meal options.
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.
Merchant Gourmet expands our category presence, complementing our already
strong brand portfolio, and we look forward to welcoming the team to Premier
Foods."

 
,

 Richard Peake, Managing Director, Merchant Gourmet

 

"Merchant Gourmet has always been about creating great-tasting, premium,
healthy food that anyone can enjoy. 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
have 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."

 

 

 Transaction details

 

 ·      Premier Foods will acquire 100% of Merchant Gourmet(1) for an
 Enterprise Value of £48.0m on a cash and debt free basis
 ·      Revenues of c.£28m(2) with strong double-digit growth over last
 two years
 ·      Valuation implies a high single-digit EV/EBITDA multiple(3) and
 is expected to be earnings accretive(4) in first full year of ownership
 ·      Transaction expected to complete on 1 September 2025

 

Further information on the transaction can be found in an investor
presentation on our website at www.premierfoods.co.uk/results-centre/
(http://www.premierfoods.co.uk/results-centre/)

 

 ~ Ends ~

 

About Premier Foods

As one of Britain's largest food producers, we're passionate about food and
believe each and every day we have the opportunity to enrich life for
everyone. Premier Foods employs over 4,000 people operating from 13 sites
across the country, supplying a range of retail,
wholesale, foodservice and other customers with our iconic brands which
feature in millions of homes every day.

 

Through some of the nation's best-loved brands, including Ambrosia,
Batchelors, Bisto, Loyd Grossman, Mr Kipling, Oxo and Sharwood's, we're
creating great tasting products that contribute to healthy and balanced diets,
while committing to nurturing our people and our local communities, and going
further in the pursuit of a healthier planet, in line with our Purpose of
'Enriching Life Through Food'.

 

About Merchant Gourmet

Merchant Gourmet, founded in 1995, was created to bring restaurant-quality
ingredients into everyday home cooking. Driven by a passion for extraordinary
flavour, quality, and simplicity, our mission is to make everyday meals more
gourmet. Boasting a healthy range of lentils, wholegrains, chestnuts and
mushrooms, Merchant Gourmet champions whole foods and real ingredients,
offering products which are ready to eat in 90 seconds, or straight from the
pouch.

 

 Contacts:

 Institutional investors and analysts:
 Duncan Leggett, Chief Financial Officer
 Richard Godden, Director of Investor Relations
 Investor.relations@premier (mailto:Investor.relations@premier) foods.co.uk

 Media enquiries:
 Lisa Kavanagh, Director of Corporate Affairs

 Headland
 Ed Young                                                                                                 +44 (0) 7884 666830
 Jack Gault                                                                                               +44 (0) 7799 089357

 - Ends -

 

This announcement may contain "forward-looking statements" that are based on
estimates and assumptions and are subject to risks and uncertainties.
Forward-looking statements are all statements other than statements of
historical fact or statements in the present tense, and can be identified by
words such as "targets", "aims", "aspires", "assumes", "believes",
"estimates", "anticipates", "expects", "intends", "hopes", "may", "would",
"should", "could", "will", "plans", "predicts" and "potential", as well as the
negatives of these terms and other words of similar meaning. Any
forward-looking statements in this announcement are made based upon Premier
Foods' estimates, expectations and beliefs concerning future events affecting
the Group and subject to a number of known and unknown risks and
uncertainties. Such forward-looking statements are based on numerous
assumptions regarding the Premier Foods Group's present and future business
strategies and the environment in which it will operate, which may prove not
to be accurate. Premier Foods cautions that these forward-looking statements
are not guarantees and that actual results could differ materially from those
expressed or implied in these forward-looking statements. Undue reliance
should, therefore, not be placed on such forward-looking statements. Any
forward-looking statements contained in this announcement apply only as at the
date of this announcement and are not intended to give any assurance as to
future results. Premier Foods will update this announcement as required by
applicable law, including the Prospectus Rules, the Listing Rules, the
Disclosure and Transparency Rules, London Stock Exchange and any other
applicable law or regulations, but otherwise expressly disclaims any
obligation or undertaking to update or revise any forward-looking statement,
whether as a result of new information, future developments or otherwise.

 

Notes to editors:

 1.     The Group will acquire 100% of the shares of Merchant Gourmet
 Holdings Limited on a cash and debt free basis from the founding shareholders.
 2.     Projected for year to 28 March 2026.
 3.     FY25 post expected synergies
 4.     Expected to be Adjusted earnings per share ("eps") accretive in
 first full year. Adjusted eps is defined as Adjusted profit after tax divided
 by the weighted average number of shares in the period. Adjusted profit after
 tax is defined as Adjusted profit before tax less a notional tax charge of
 25.0%. Adjusted profit before tax is defined as Trading profit less net
 regular interest. Trading profit is defined as profit/(loss) before tax,
 before net finance costs, amortisation of acquired intangibles, fair value
 movements on foreign exchange and other derivative contracts, net interest on
 pensions and administration expenses. Net regular interest is defined as net
 finance cost after excluding write-off of financing costs, early redemption
 fees, other interest payable and other finance income.
 5.     All Merchant Gourmet products are supplied through third party
 manufacturing arrangements
 6.     Merchant Gourmet has 25 employees, all of whom are expected to
 transfer to Premier Foods
 7.     There are no further conditions to be fulfilled post completion of
 the transaction
 8.     There is no deferred consideration payable associated with the
 transaction

 

 

 

 

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