Premier Foods has snapped up premium ready-to-eat grain and pulse pouch brand Merchant Gourmet.
The group acquired 100% of Merchant Gourmet’s shares under the deal, in a £48m cash and debt-free purchase from the brand’s founding shareholders.
Revealed this morning (21 August), the deal is expected to complete on 1 September 2025. All 25 Merchant Gourmet employees are expected to transfer to Premier under the deal.
“Highly complementary” to Premier’s existing portfolio, which includes brands such as Batchelors, Loyd Grossman, Oxo and Mr Kipling, Merchant Gourmet holds a broad consumer base, “exceptionally strong” repeat rates and an established track record of new category expansion, according to Premier.
Merchant Gourmet is projected to turn over around £28m for the year to 28 March 2026 , and has registered strong double-digit growth in the past two years as consumers turn to premium, healthy and convenient meal options. All of its products are supplied through third-party manufacturing arrangements.
“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,” said Premier CEO 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.”
Merchant Gourmet MD Richard Peake added: “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.
“They understand where we’ve come from, they respect what makes our brand special, and we’re excited to continue innovating boldly and inspiring people to fall in love with simple, good food.”
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