Highlights
- Premier Foods acquires Merchant Gourmet in £48m deal, expanding its healthy, convenient meals portfolio
- Projected revenues of ~£28m for y/e 28 March 2026; strong double-digit growth over the last two years.
- Acquisition expected to be earnings accretive in year one, with all staff transferring to Premier Foods
Premier Foods has agreed to acquire healthy meals brand Merchant Gourmet for £48m, in a move that strengthens its portfolio of premium, convenient food brands.
The deal, announced today (21 August), will see Premier Foods take full ownership of the fast-growing brand on a cash- and debt-free basis, with completion expected on 1 September. Merchant Gourmet, known for its ready-to-eat pulses, grains, microwaveable rice and ‘meals in minutes,’ is projected to generate around £28m in revenues for the year to 28 March 2026, following strong double-digit growth over the past two years.
Premier Foods said the acquisition aligns with its strategy of buying brands where it can accelerate growth through its established branded growth model. The company plans to expand Merchant Gourmet’s distribution, step up innovation and boost marketing investment, echoing the successful playbook used with its acquisitions of The Spice Tailor and FUEL10K.
“We’re very pleased to have agreed the acquisition of Merchant Gourmet, which meets the growing demand for premium, healthy and convenient meal options,” Premier Foods chief executive Alex Whitehouse said.
“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.”
Merchant Gourmet managing director Richard Peake added: “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.”
The acquisition is expected to be earnings accretive in its first full year. All 25 Merchant Gourmet employees will transfer to Premier Foods.