Premier Foods has agreed to acquire Indian and South East Asian meal kits and accompaniments brand, The Spice Tailor, for an initial consideration of £43.8 million (€51.7 million) on a cash-free and debt-free basis.
An additional consideration is dependent on future performance and earn-out structure over three years from FY23/24, subject to further growth targets, Premier Foods added.
'A Clear Opportunity'
Alex Whitehouse, chief executive officer of Premier Foods 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.
"This acquisition represents a highly complementary geographical fit, and we see significant potential to expand The Spice Tailor's distribution in all our target markets. We see this as another important milestone for us following the group's strong performance over recent years and The Spice Tailor is an important addition to accelerate our future growth plans."
The Spice Tailor
The Spice Tailor has posted a compound annual growth rate of +20% over the last four years and is forecast to deliver strong sales and profit growth over the coming years.
It is expected to generate revenue of £17.3 million (€20.4 million) in FY22/23.
Adarsh and Anjum Sethia, founders of The Spice Tailor, added, "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, which we have nurtured since its inception.
"We see Premier, with its 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."
The deal is subject to merger control clearance, Premier Foods added.