Premier Foods to Acquire Merchant Gourmet for £48 Million, Expanding Healthy Meal Options

Premier Foods (LON:PFD) announced Thursday its agreement to acquire Merchant Gourmet, a premium healthy ready-to-eat brand, for an enterprise value of £48.0 million on a cash and debt-free basis.

The company said the acquisition aligns with its strategy of acquiring brands where it can add value and drive further growth.

The deal provides Premier Foods with a market-leading position in pulses and grains, a sector experiencing robust growth.

Merchant Gourmet boasts a broad consumer base with exceptionally strong repeat purchase rates and a solid track record of expanding into new categories. Its product range includes ready-to-eat pulses and grains, microwaveable rice, and “meals in minutes.”

Financially, Merchant Gourmet generated approximately £28 million in revenue, demonstrating strong double-digit growth over the past two years.

The acquisition's valuation implies a high single-digit EV/EBITDA multiple. Premier Foods anticipates the transaction to be earnings accretive in the first full year of ownership. The transaction is expected to be completed on September 1, 2025.

Premier Foods plans to leverage its branded growth model to unlock significant value from the acquisition. This includes expanding retailer distribution, accelerating new product development, and increasing marketing investment.

The company has successfully applied this strategy to previous acquisitions like The Spice Tailor and FUEL10K.

Alex Whitehouse, Chief Executive Officer, stated, “We're very pleased to have agreed the acquisition of Merchant Gourmet, which meets the growing demand for premium, healthy and convenient meal options. ”

“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 of Merchant Gourmet, added, “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.”