The deal will see Premier Foods purchase 100% of shares in Merchant Gourmet on a cash and debt free basis, with the transaction expected to complete on 1 September 2025.
Merchant Gourmet has seen double-digit growth over last two years and is expected to be earnings accretive in first full year of ownership.
The brand specialises in branded ready-to-eat pulses and grains and microwaveable rice dishes, and has listings in leading grocery retailers such as Tesco, Sainsbury’s and Waitrose.
Commenting on the deal, Premier Foods chief executive officer Alex Whitehouse said that the acquisition would enable the firm to meet “growing demand for premium, healthy and convenient meal options”.
“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,” Whitehouse added.
“Merchant Gourmet expands our category presence, complementing our already strong brand portfolio, and we look forward to welcoming the team to Premier Foods.”
Premier Foods acquired protein brand FUEL10K for £34 million in October 2023, and South Asian food brand The Spice Tailor for £43.8 million in July 2022.
Richard Peake, managing director at Merchant Gourmet, 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.”
