Premier Foods has revealed its £48m acquisition of healthy meal brand Merchant Gourmet.
The acquisition forms part of Premier Foods’ strategy to broaden its portfolio with high-growth potential brands.
In recent years, the company has strengthened its growth model with the acquisitions of Fuel10K and The Spice Tailor.
Chief executive of Premier Foods, Alex Whitehouse, said: “We’re very pleased to have agreed to the acquisition of Merchant Gourmet, which meets the 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.
“Merchant Gourmet expands our category presence, complementing our already strong brand portfolio, and we look forward to welcoming the team to Premier Foods.”
According to the company, Merchant Gourmet is forecast to generate £28m in revenue for the year ending 28 March 2026.
Managing director of Merchant Gourmet, 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.”
The deal is scheduled to be finalised on 1 September.