RNS Number : 6199R

Premier Foods plc

30 October 2023

30 October 2023

Premier Foods plc (the "Company" or the "Group")

Acquisition of FUEL10K, accelerating expansion into Breakfast 

Premier Foods today announces it has acquired FUEL10K, a vibrant Breakfast brand, with a portfolio of granola, oats and drinks products, as the Group significantly expands its presence in the Breakfast meal occasion.

  Strategic highlights & opportunities 
      --   FUEL10K is a differentiated, protein enriched Breakfast brand 
      --   On-trend proposition which attracts a predominantly young 
            consumer demographic 
      --   Track record of strong double-digit revenue growth over the 
            last three years 
      --   Substantially increases Group's position in the Breakfast 
            category, building on success of Ambrosia porridge pots 
      --   The Group expects to unlock significant future value through 
            leveraging its proven branded growth model 
      --   FUEL10K's commitment to sustainability supports the Group's 
            purpose of Enriching Life Through Food 
 Alex Whitehouse, Chief Executive Officer 

"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."


 Barney Mauleverer, co-founder, FUEL10K 

"We are very excited to be passing the reigns on to the owner of such a great stable of UK brands. Having built the foundations from start-up, the FUEL10K brand is now primed to accelerate into the future and achieve even more great things. I could not think of a better custodian of our brand than Premier Foods to entrust what we have begun and make the most of such a great opportunity."

 Transaction details 
      --   Premier Foods has acquired 100% of FUEL10K(,1) for an Enterprise 
            Value of GBP34.0m, equivalent to an EV/sales multiple of c.1.6x 
            on revenues(2) of c.GBP21m 
      --   Initial consideration of GBP29.6m funded through available 
            cash reserves 
      --   A minimum further deferred consideration of GBP4.0m will be 
            payable in FY26/27, with any increment to this dependent upon 
            certain growth targets(3) 
      --   Earnings accretive(6) in first full year 
      --   Post acquisition, the Group's FY23/24 Net debt/EBITDA is expected 
            to be lower than FY22/23 
      --   The transaction completed on 29 October 2023 

Further information on the transaction can be found in an investor presentation on our website at



About Premier Foods

As one of the UK's largest food businesses, we're passionate about food and believe each and every day we have the opportunity to enrich life for everyone. Premier Foods employs over 4,000 people operating from 15 sites across the country, supplying a range of retail, wholesale, foodservice and other customers with our iconic brands which feature in millions of homes every day.

Through some of the nation's best-loved brands, including Ambrosia, Batchelors, Bisto , Loyd Grossman, Mr. Kipling, Oxo and Sharwood's, we're creating great tasting products that contribute to healthy and balanced diets, while committing to nurturing our people and our local communities, and going further in the pursuit of a healthier planet , in line with our Purpose of 'Enriching Life Through Food'.

About FUEL10K

FUEL10K make fuel for busy people, with a protein enriched Breakfast range which make mornings easier, tastier and more nutritious. The portfolio includes a range of granola, oats and drinks products which can be eaten at the Breakfast table or on the go. FUEL10K is sold in the UK in all major retailers, convenience channels and online and attracts a young demographic who need fuel to power them through the day. A fast growing Breakfast brand, FUEL10K was acquired by Premier Foods on 29 October 2023.


Institutional investors and analysts:

Duncan Leggett, Chief Financial Officer

Richard Godden, Director of Investor Relations

Investor.relations@premier foods.co.uk

Media enquiries:

Sarah Henderson, Director of Communications


               +44 (0) 7884 
 Ed Young       666830 
               +44 (0) 7799 
 Jack Gault     089357 

- Ends -

This announcement may contain "forward-looking statements" that are based on estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements are all statements other than statements of historical fact or statements in the present tense, and can be identified by words such as "targets", "aims", "aspires", "assumes", "believes", "estimates", "anticipates", "expects", "intends", "hopes", "may", "would", "should", "could", "will", "plans", "predicts" and "potential", as well as the negatives of these terms and other words of similar meaning. Any forward-looking statements in this announcement are made based upon Premier Foods' estimates, expectations and beliefs concerning future events affecting the Group and subject to a number of known and unknown risks and uncertainties. Such forward-looking statements are based on numerous assumptions regarding the Premier Foods Group's present and future business strategies and the environment in which it will operate, which may prove not to be accurate. Premier Foods cautions that these forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in these forward-looking statements. Undue reliance should, therefore, not be placed on such forward-looking statements. Any forward-looking statements contained in this announcement apply only as at the date of this announcement and are not intended to give any assurance as to future results. Premier Foods will update this announcement as required by applicable law, including the Prospectus Rules, the Listing Rules, the Disclosure and Transparency Rules, London Stock Exchange and any other applicable law or regulations, but otherwise expressly disclaims any obligation or undertaking to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Notes to editors:

    1.   The Group has acquired 100% of the shares of FUEL10K Limited 
          on a cash and debt free basis 
    2.   Projected revenue to the year ended 31 March 2024 
    3.   Additional consideration above the Enterprise value of GBP34.0m 
          is dependent on future sales growth to FY25/26 and subject 
          to a maximum cap of total consideration (comprising initial 
          consideration and additional consideration) of GBP55.0m. The 
          maximum cap reflects a stretching revenue target. 
    4.   For year ended 31 March 2023, FUEL10K reported Profit before 
          tax of GBP0.5m; as at 31 March 2023, Gross Assets were GBP5.1m 
    5.   There are no further conditions to be fulfilled post completion 
          of the transaction 
    6.   Expected to be Adjusted earnings per share ("eps") accretive 
          in year one. Adjusted eps is defined as Adjusted profit after 
          tax divided by the weighted average number of shares in the 
          period. Adjusted profit after tax is defined as Adjusted profit 
          before tax less a notional tax charge of 25.0%. Adjusted profit 
          before tax is defined as Trading profit less net regular interest. 
          Trading profit is defined as profit/(loss) before tax, before 
          net finance costs, amortisation of acquired intangibles, fair 
          value movements on foreign exchange and other derivative contracts, 
          net interest on pensions and administration expenses. Net regular 
          interest is defined as net finance cost after excluding write-off 
          of financing costs, early redemption fees, other interest payable 
          and other finance income. 

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(END) Dow Jones Newswires

October 30, 2023 03:00 ET (07:00 GMT)

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