Mr Kipling owner acquires meal-kit brand The Spice Tailor for £43.8m
Premier Foods has snapped up the Indian and South East Asian meal kits business The Spice Tailor, for an initial £43.8m.
The Spice Tailor is anticipated to generate revenue of £17.3m in the 2022/23 financial year, with the Mr Kipling owner enticed by its 20 per cent compound annual growth rate over the last four years.
“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,” Alex Whitehouse, chief executive officer, said.
The takeover was a “highly complementary geographical fit,” as well as aligning well with Premier Foods’ Sharwood’s and Loyd Grossman sauce brands, Whitehouse added.
“We see Premier with their track record of brand investment and strong commercial relationships, as the perfect fit for The Spice Tailor, driving it onto the next stage of its evolution,” Adarsh and Anjum Sethia, founders of The Spice Tailor, added.
Shares in the London-listed Premier Foods were boosted by some 2.5 per cent in early morning trading on Monday.
Shoppers are increasingly turning to budget meals amid the cost of living crisis in the UK, the boss of the consumer goods giant said last week.
The popularity of its instant ramen brands Nissin and Batchelors, which own Cup Noodle and Super Noodles respectively, in the first quarter of this year have jumped, as household budgets become increasingly stretched with inflation hitting 9.4 per cent – a 40-year high.
Grocery sales grew by more than six per cent in the three months to 2 July, as consumers steer towards home cooking instead of dining out, as costs across the country rise.