LONDON (dpa-AFX) - Premier Foods Plc (PFD.L), a British food manufacturer, said on Monday that it has acquired FUEL10K, a breakfast brand with a portfolio of granola, oats, and drinks products, for 34 million pounds on a cash and debt free basis.
Alex Whitehouse, CEO of Premier Foods, said: '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.'
The transaction, completed on October 29, 2023, will add to the earnings of the acquirer in the first-full year.
The initial consideration of 29.6 million pounds funded through available cash reserves. A minimum further deferred consideration of 4 million pounds will be payable in 2026-27, with any increment to this dependent upon certain growth targets.
The additional consideration above 34 million pounds is dependent on future sales growth to FY2025-26 and subject to a maximum cap of total consideration of 55 million pounds.
FUEL10K has track record of strong double-digit revenue growth over the last three years. For year ended on March 31, 2023, FUEL10K had reported profit before tax of 0.5 million pounds with gross assets of 5.1 million pounds.
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