Premier Foods buys breakfast brand FUEL10K in £34m deal

30th Oct 2023 08:01

(Sharecast News) - Mr Kipling owner Premier Foods said on Monday that it has bought breakfast brand FUEL10K in a £34m deal.

FUEL10K has a portfolio of granola, oats and drinks products.

Premier will pay an initial consideration of £29.6m in cash, with a minimum deferred further consideration of £4m payable in FY26/27 and any increment to this dependent on certain growth targets.

The deal is expected to be earnings-accretive in the first full year.

Premier Foods chief executive Alex Whitehouse said: "The acquisition of FUEL10K follows on from our successful integration of The Spice Tailor, where we have increased revenue and profit through the application of our branded growth model.

"FUEL10K provides us with an ideal platform to accelerate our expansion into the Breakfast category, building on our recent successful launch of Ambrosia porridge pots. Possessing a differentiated category position, with its protein enriched product range and appealing to a younger demographic, we expect to deliver significant further profitable growth of FUEL10K through the deployment of our successful branded growth model."