Premier Foods to acquire Merchant Gourmet in US$64M deal to boost healthy convenience portfolio
Premier Foods expects to unlock significant value through innovation, expanded retailer distribution, and marketing investment, reinforcing its ambition to grow its presence in healthy convenience foods.
LONDON – Premier Foods, an ambient packaged foods company, has agreed to acquire Merchant Gourmet, a leading premium brand of healthy, convenient meals, for an enterprise value of £48.0 million (approx US$64 million) on a cash- and debt-free basis.
The transaction, subject to standard closing processes, is expected to be completed on 1 September 2025.
Founded in 1995, Merchant Gourmet is renowned for its ready-to-eat lentils, wholegrains, chestnuts, and mushrooms, products that combine extraordinary flavour, quality, and convenience.
With revenues of approximately £28 million (approx US$37 million) – projected for the year to 28 March 2026 – and strong double-digit growth over the last two years, the brand holds market-leading positions in pulses, grains, and quick-serve meal solutions.
Premier Foods’ portfolio includes household names such as Mr Kipling, Sharwood’s, Ambrosia, and Batchelors, spanning ambient meals, desserts, cooking sauces, and snacks.
The acquisition of Merchant Gourmet is highly complementary to this portfolio and fully aligned with the Group’s strategy of acquiring high-growth, premium brands.
Merchant Gourmet’s broad consumer appeal, exceptional repeat purchase rates, and track record in new category expansion present significant opportunities to scale through Premier Foods’ proven branded growth model.
“We’re delighted to welcome Merchant Gourmet, a brand perfectly placed to meet growing demand for premium, healthy, and convenient meals. Following the success of The Spice Tailor and FUEL10K acquisitions, we will expand distribution, accelerate innovation, and increase marketing investment to unlock further profitable growth,” Alex Whitehouse, Chief Executive Officer of Premier Foods, said.
The deal implies a high single-digit enterprise-value-to-EBITDA multiple and is expected to be earnings-accretive in its first full year of ownership. All 25 Merchant Gourmet employees will transfer to Premier Foods, ensuring continuity of expertise.
Premier Foods expects to unlock significant value through innovation, expanded retailer distribution, and marketing investment, reinforcing its ambition to grow its presence in healthy convenience foods.
“Merchant Gourmet has always championed simple, good food with bold flavours. Over recent years, we’ve delivered double-digit revenue growth and successfully entered new categories and markets. Premier Foods is the right partner to match our ambition and take the brand to the next level,” Richard Peake, Managing Director of Merchant Gourmet, said.
Merchant Gourmet products, supplied through third-party manufacturing, are ready to eat in just 90 seconds or straight from the pouch – delivering restaurant-quality ingredients to everyday kitchens.
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