Premier Foods is reportedly exploring a potential acquisition of premium pizza brand Crosta Mollica, although the UK group has declined to comment on the speculation.
According to Sky News, the Mr Kipling and Sharwood’s owner is considering a bid of around £200m ($267.8m) for the business and is understood to be among several parties evaluating an offer.
Under the leadership of CEO Alex Whitehouse, Premier Foods has re-established itself as an active player in mergers and acquisitions. Most recently, the company announced the £48m purchase of ready-to-eat grains and pulses brand Merchant Gourmet in August.
This followed a series of strategic deals, including the £34m acquisition of cereal, snack bar and milk drinks brand Fuel10K in 2023. A year earlier, Whitehouse had returned the group to M&A activity after more than a decade with the £44m purchase of The Spice Tailor.
London-based Crosta Mollica positions itself in the premium segment of the pizza category, marketing its range under a “Made in Italy” proposition and typically retailing at around £6.
Since taking the helm in 2019, Whitehouse has focused on strengthening Premier Foods’ financial position and driving branded growth. The company has reduced its debt significantly, reaching its lowest level on record at just under £144m last year. Over the same period, sales increased 3.5% to £1.15bn, while net debt to adjusted EBITDA fell to 0.7 times, compared with 1.2 the previous year.
An acquisition of Crosta Mollica would align with this strategy, adding a premium branded asset to the group while complementing its existing portfolio.
Premier Foods reported trading profit of £187.8m last year, representing a 6% increase, while net profit after tax rose 6.5% to £161.3m.
The company’s shares have gained 8% so far this year, trading at around 183 pence.
