LONDON: Premier Foods has agreed to acquire 100% of The Spice Tailor shares for initial consideration of £43.8 million on a cash free and debt free basis. The Spice Tailor is expected to generate revenue of £17.3 million in FY22/23.
The Spice Tailor is the premium, authentic Indian and South East Asian meal kits and accompaniments brand.
Alex Whitehouse, Chief Executive Officer, said, “We have greatly admired The Spice Tailor business for some time and we’re very much looking forward to it joining our existing stable of strong brands. The acquisition is well aligned to our growth strategy and we see a clear opportunity to build on the excellent track record of The Spice Tailor, by leveraging the elements of our proven branded growth model.
This acquisition represents a highly complementary geographical fit, and we see significant potential to expand The Spice Tailor’s distribution in all our target markets. We see this as another important milestone for us following the Group’s strong performance over recent years and The Spice Tailor is an important addition to accelerate our future growth plans.”
Adarsh and Anjum Sethia, Founders, The Spice Tailor, “We’re very pleased that The Spice Tailor will become part of Premier Foods and are looking forward to unlocking further growth for the brand which we have nurtured since its inception. We see Premier with their track record of brand investment and strong commercial relationships, as the perfect fit for The Spice Tailor, driving it onto the next stage of its evolution.”
The Spice Tailor is particularly popular with consumers who enjoy scratch cooking and appreciate the strong authentic taste profiles the products deliver, typically attracting different consumers than users of Sharwood’s and Loyd Grossman.
Once integrated into the Group’s Cooking Sauces and Accompaniments category team, The Spice Tailor will benefit from increased levels of marketing investment to drive product awareness and household penetration, additional new product development resources, and access to Premier Foods’ commercial capabilities and strong retailer relationships.
The Spice Tailor’s largest markets are the UK and Australia which account for 58% and 35% respectively of annual FY21 sales.
Operating an asset light business model, the authenticity of The Spice Tailor range is reflected in the fact that the vast majority of its products are manufactured in India, by way of outsourcing to BRC accredited suppliers.
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