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Highlights

  • Premier Foods to acquire Merchant Gourmet for an enterprise value of £48 million on a cash and debt free basis.

  • Merchant Gourmet generated approximately £28 million in revenue with double-digit growth over the past two years.

  • The acquisition is expected to be earnings accretive in the first full year of ownership.

     

Premier Foods plc has announced it has reached an agreement to acquire Merchant Gourmet, a leading brand in premium, healthy, and convenient meals. The move is part of Premier Foods’ strategy to expand its branded portfolio and pursue growth through selective acquisitions.

The acquisition, valued at £48 million (approximately AUD 92 million) on a cash and debt free basis, will see Premier Foods take 100% ownership of Merchant Gourmet. Completion of the transaction is scheduled for 1 September 2025.

Strategic Rationale

Merchant Gourmet is recognised for its portfolio of branded ready-to-eat pulses, grains, microwaveable rice, and quick meals. The business has established market-leading positions in pulses and grains and has consistently demonstrated profitable sales growth. The company’s products cater to a wide consumer base, with notable repeat purchase rates and a track record of expanding into new categories.

The addition of Merchant Gourmet is expected to complement Premier Foods’ existing product range, aligning closely with the Group’s acquisition strategy. Premier Foods intends to leverage its proven branded growth model to unlock further value from the Merchant Gourmet business.

Financial Details

Merchant Gourmet reported revenues of approximately £28 million (around AUD 54 million), reflecting strong double-digit growth over the past two years. The valuation represents a high single-digit EV/EBITDA multiple, underlining the brand’s financial performance and growth potential. Importantly, Premier Foods anticipates the transaction will be earnings accretive in its first full year of ownership.

About Premier Foods

Premier Foods is one of the UK’s largest food producers, employing more than 4,000 people across 13 sites nationwide. The Group supplies a wide range of retail, wholesale, and foodservice customers, with a portfolio of iconic brands that feature in millions of households daily.

By adding Merchant Gourmet to its brand portfolio, Premier Foods reinforces its commitment to acquiring businesses where it can add value and support sustained growth. The transaction marks another step in executing its strategy of expanding through complementary acquisitions that align with evolving consumer preferences for healthy and convenient meal options.