LONDON: Premier Foods said Thursday it has agreed to acquire Merchant Gourmet, a premium brand known for healthy, ready-to-eat meals, in a £48 million ($61 million) deal aimed at accelerating its growth strategy.
The acquisition, expected to close on Sept. 1, will see Premier Foods take full ownership of the brand, which specializes in microwaveable rice, pulses, grains, and “meals in minutes.”
Projected for year to 28 March 2026.
Merchant Gourmet is projected to generate approximately £28 million for the year to March 28, 2026.
Premier Foods CEO Alex Whitehouse said the deal aligns with the company’s strategy of acquiring brands where it can “add value and deliver further growth.” He cited the success of previous acquisitions—The Spice Tailor and FUEL10K—as proof of the company’s ability to scale premium food brands.
“We’re very pleased to have agreed the acquisition of Merchant Gourmet, which meets the growing demand for premium, healthy and convenient meal options,” Whitehouse said. “We will be deploying our proven branded growth model—expanding retailer distribution, accelerating new product development, and increasing marketing investment.”
Merchant Gourmet Managing Director Richard Peake said the brand has built a loyal consumer base and expanded into new categories and markets. “Premier Foods is the right partner to match our ambition,” Peake said. “They understand where we’ve come from, they respect what makes our brand special, and we’re excited to continue innovating boldly.”
Premier Foods said the transaction is expected to be earnings accretive in the first full year of ownership and was valued at a high single-digit EV/EBITDA multiple.
The acquisition adds to Premier Foods’ portfolio of health-focused brands and strengthens its position in the fast-growing convenient meals segment.