Premier Foods has revealed its acquisition of Fuel10k, a prominent breakfast brand, in a deal worth £34 million, further solidifying its foothold in the breakfast meal category.
Premier Foods is a large UK-based food manufacturer known for its extensive lineup of renowned brands, which includes household names such as Mr Kipling, Cadbury, and Batchelors. Building on its track record of acquisitions, the company has now added Fuel10k to its portfolio, following the acquisition of The Spice Tailor, an Indian and South East Asian meal kit brand, in July of the previous year.
Premier announced that the transaction, finalized on October 29, 2023, is poised to significantly bolster the company’s standing in the breakfast category, leveraging its prior accomplishment with the popular introduction of Ambrosia porridge pots.
The company is set to make an initial payment of £29.6 million, utilizing its existing cash reserves. Additionally, a minimum deferred payment of £4 million will become due in the fiscal year 2026/2027, with any potential increments contingent on meeting specific growth targets.
Premier referred to Fuel10k as a breakfast brand enriched with protein, labeling it as ‘on-trend’ in the statement that revealed the acquisition.
The brand’s product lineup encompasses granola, porridge, cookies, and a range of protein-rich snacks. Over the past three years, it has consistently achieved robust double-digit revenue growth. Its products are available through prominent UK retailers, convenience outlets, and online platforms.
Alex Whitehouse, chief executive officer of Premier Foods, said, “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”.
Fuel10k’s Co-Founder, Barney Mauleverer, commented, “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.”