Premier Foods has agreed to acquire The Spice Tailor, an Indian and South East Asian meal kits and accompaniments brand, in a deal worth £43.8m.
The Oxo and Mr Kipling owner noted that The Spice Tailor was a “high growth premium brand” with more than 20% compound annual growth rate over the last four years and forecast to deliver strong sales and profit growth ahead. It will also complement Premier’s existing Sharwood’s and Loyd Grossman brands, with a strong geographical fit given its presence in the UK, Australia, Canada and Ireland. The brand’s biggest markets are the UK and Australia, which account for 58% and 35% of current annual sales respectively.
Following the acquisition, The Spice Tailor will benefit from increased levels of marketing investment, additional new product development resources, and access to Premier Foods’ commercial capabilities and retailer relationships.
The deal is expected to be earnings-accretive in year one and The Spice Tailor is on track to generate revenue of £17.3m during its next financial year.
Alex Whitehouse, Chief Executive of Premier Foods, 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. 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.”
He added: “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.”
Adarsh and Anjum Sethia, Founders of The Spice Tailor, commented: “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 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.”
