Premier Foods (LSE:PFD) has announced its acquisition of Merchant Gourmet in a deal worth £48 million.
The deal, struck on a cash and debt-free basis, is expected to be earnings accretive in the first full year under Premier Foods' ownership.
Merchant Gourmet sells premium and healthy ready-to-eat pulses and grains, microwaveable rice and meals in minutes.
It's forecast to generate some £28 million of revenue in the financial year to 28 March 2026, having seen strong double-digit growth over the last two years.
“We're very pleased to have agreed the acquisition of Merchant Gourmet, which meets the growing demand for premium, healthy and convenient meal options," said Premier Foods chief executive Alex Whitehouse.
"Merchant Gourmet expands our category presence, complementing our already strong brand portfolio, and we look forward to welcoming the team to Premier Foods.”
All Merchant Gourmet products are supplied through third-party manufacturing, PFD noted.