Thu, 21 Aug 2025 | BUSINESS SALE
Premier Foods has agreed a £48 million deal to acquire Merchant Gourmet, a premium ready-meal and ingredients brand, as it looks to meet rising consumer demand for healthy and convenient meal options. The acquisition is expected to be completed on 1st September 2025 and will be earnings-accretive in its first full year under Premier’s ownership.
Merchant Gourmet, founded in 1995, is known for its ready-to-eat pouches of pulses, grains and plant-based meals, which can be enjoyed directly or prepared in just 90 seconds. The company has delivered consistent double-digit growth over the past two years and is now projected to generate around £28 million in annual revenues.
Premier Foods, is the owner of household names such as Bisto, Mr Kipling, and Ambrosia, and has said the deal reflects its strategy of expanding into adjacent food categories. The company plans to use its established branded growth model focusing on distribution gains, marketing investment and new product development to accelerate Merchant Gourmet’s performance.
Alex Whitehouse, Chief Executive, Premier Food said: “This acquisition taps into the growing demand for premium, healthy and convenient meals. We see strong opportunities to scale Merchant Gourmet by leveraging our proven approach to brand building.”
Richard Peake, Merchant Gourmet Managing Director added that Premier was the “right partner” to match the company’s ambition, highlighting the alignment in values and long-term vision. “They understand where we’ve come from and where we want to go,” he said.
The move continues Premier Foods’ acquisitive momentum, following successful integrations of The Spice Tailor and breakfast brand FUEL10K. The company, which employs over 4,000 staff across 13 UK sites has reported steady growth since it has diversified beyond its traditional portfolio.
The deal underlines ongoing consolidation in the UK food sector, with major manufacturers targeting premium, health-focused brands to capture shifting consumer preferences.
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