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Premier Foods PLC on Monday announced it has agreed to acquire Indian and South East Asian meal kits brand Spice Tailor.
The Hertfordshire, England based company will acquire 100% of shares in Spice Tailor for an initial consideration of £43.8 million on a cash and debt free basis.
Additional consideration is dependent on future performance and earn-out over a three-year period ending March 30, 2024.
Chief Executive Officer Alex Whitehouse said: ‘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’.
The at-home Indian meal kits brand is expected to generate revenue of £17.3 million in the upcoming financial year. Its largest markets are the UK and Australia, which accounted for 58% and 35% respectively of sales in 2021.
Spice Tailor will compliment Premier Foods' existing brands such as Lloyd Grossman, Sharwood's and Mr Kipling. In addition, the acquisition will expand Premier Food's operating footprint and ethnic foods business in Australia.
‘We're very pleased that The Spice Tailor will become part of Premier Foods and are looking forward to unlocking further growth for the brand...We see Premier with their track record of brand investment and strong commercial relationships, as the perfect fit for The Spice Tailor,’ said the founders of Spice Tailor, Adrash and Anjum Sethia.
Shares in Premier Foods were up 3.0% at 116.40 pence in London on Monday morning.
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