Premier Foods on Monday announced it has agreed to acquire the at-home meal kits brand Spice Tailor.
The food manufacturer will acquire 100% of Spice Tailor for approximately £43.8 million on a cash-free and debt-free basis.
Premier Foods highlights The Spice Tailor as a high-growth premium brand, which they forecast to deliver strong sales and profit growth over the coming years. The company also believes the acquisition will significantly expand the group’s ethnic foods business in Australia.
Any additional funds will be dependent on the future performance of Spice Tailor. In addition, the brand is expected to generate revenue of £17.3 million in FY22/23.
Alex Whitehouse, CEO of Premier Foods, states the company has “greatly admired” The Spice Tailor and is looking forward to adding it to its portfolio of “strong brands.” No need for bragging.
Whitehouse commented, “The acquisition is well aligned to our growth strategy and we see a clear opportunity to build on the excellent track record of The Spice Tailor, by leveraging the elements of our proven branded growth model.”
All of this food talk has got me peckish…
Shares of Premier Foods increased 3.36% on Monday following the announcement.
The news comes after the company reported first-quarter earnings last week, beating analysts’ expectations.