Premier Foods Accelerates Breakfast Revolution with £34 Million FUEL10K Acquisition
In a strategic coup set to shake up the breakfast category, Premier Foods has announced the acquisition of FUEL10K, a protein-packed brand poised for greatness.
This audacious move comes hot on the heels of Premier Food’s triumphant launch of Ambrosia porridge pots, signalling their unwavering commitment to redefine the most important meal of the day.
FUEL10K: A Meteoric Rise
FUEL10K, the shining star of the breakfast world, has witnessed an astonishing three years of double-digit revenue growth.
With its tantalising range of granola, oats, and invigorating drinks, FUEL10K has captured the imaginations of health-conscious consumers and carved a niche among the trendsetting younger demographic.
Premier Foods’ CEO has left no room for doubt, expressing utmost confidence in the acquisition. The CEO emphasised that FUEL10K’s protein-enriched product line bestows upon them a category position that’s set to stand out.
Furthemore, Premier Foods envisions substantial and sustainable profitable growth for FUEL10K, thanks to their proven and successful branded growth model.
£34 Million Deal: A Win-Win Proposition
The acquisition of FUEL10K for a substantial £34 million price tag represents a 1.6x sales multiple based on projected revenues of £21 million for the fiscal year ending March 31, 2024.
Moreover, Premier Foods will make an initial payment of £29.6 million, funded directly from their robust cash reserves. An additional £4 million, at a minimum, will follow in the financial year 2026/27, contingent upon FUEL10K meeting ambitious growth targets.
A Heartfelt Transition and the Promise of More
FUEL10K’s co-founders couldn’t be more thrilled about handing the reins to Premier Foods, a company with an illustrious history of iconic UK brands.
They remarked on the incredible journey from start-up to the present and expressed their conviction that FUEL10K is now ready to embark on an even more spectacular journey.
With Premier Foods at the helm, they see an unparalleled opportunity to realise the brand’s full potential.
Premier Foods’ Expanding Dominion
This acquisition is not Premier Foods’ first foray into strategic expansion. Just over a year ago, in July 2022, Premier Foods made waves with its £43.8 million acquisition of The Spice Tailor.
These bold moves illustrate Premier Foods’ determination to secure a leading position in the food industry, particularly in the breakfast category.
Conclusion: A Sizzling Start to the Day and Beyond
Premier Foods’ acquisition of FUEL10K is a resounding testament to their commitment to revolutionising breakfasts. With their track record of delivering on promises and their keen focus on evolving consumer tastes, Premier Foods is poised to propel FUEL10K to unprecedented heights.
This £34 million investment signifies not only a shrewd business decision but also a marriage of two brands passionate about providing nutritious and thrilling breakfast options.
As Premier Foods continues to expand its breakfast empire, the future of the morning meal has never looked brighter. Prepare for an exciting journey ahead as Premier Foods and FUEL10K’s collaboration redefines the most important meal of the day.
News Credits: Premier Foods acquires FUEL10K in £34m deal
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