Premier Foods buys TV chef curry kit company The Spice Tailor for £44m | Personal Finance | Finance

Premier Foods, whose other kitchen staples include Ambrosia custard and Bisto gravy, went on a three-year buying spree in the past that saddled the group with big debts. A decade ago management sold off a number of brands, such as Sarson’s vinegar and Haywards pickles.

But in a sign that it is finally back on track, Premier yesterday announced the acquisition of The Spice Tailor for £43.8million.

The business was founded in the UK by Anjum Anand and her husband Adarsh Sethia. It was set up in 2011 with a focus on healthy, quality Indian food.

Anjum is a chef, cookery writer and TV presenter in the UK and Australia.

The SpiceTailor is expected to generate sales of £17.3million this financial year.

Alex Whitehouse, Premier Foods’ chief executive, said: “We have greatly admired The Spice Tailor business for some time and we’re very much looking forward to it joining our existing stable of strong brands.”

Anjum and her husband said: “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.”

Peel Hunt, Premier Foods’ house broker, said: “Premier is making its first acquisition for 16 years, which demonstrates the massive improvements in performance and balance sheet in recent years.”

It added: “This deal should accelerate top-line growth and strengthen the international branded profile of Premier.

“The price is spicy as well but the scale of opportunity is highly attractive in our view.”

In May, Premier reported that its annual sales had fallen 3.6 per cent to £900million.

The previous year had been boosted by Covid lockdowns and the sale of its Hovis investment.

It meant that Premier’s annual profits this time slumped 16.4 per cent to £102.6million.

Premier’s share price, which is marginally up in the year to date, increased further on the back of yesterday’s announced deal.


Source link

Check Also

NBA All-Star Stephen Curry becomes lead investor, brand ambassador for Nirvana Super Waters

Check out what’s clicking on FoxBusiness.com Golden State Warriors superstar Stephen Curry expanded his investment …