What's Happening?
Mama's Creations, a U.S.-based fresh deli prepared foods processor, has announced the acquisition of Crown I Enterprises, a manufacturer of meat products and ready-to-eat meals. The acquisition involves purchasing substantially all assets from Sysco Corporation for $17.5 million in cash. This transaction is partially funded through a $27.4 million senior secured credit facility with M&T Bank. Crown contributes approximately $56 million in annual revenue, and the acquisition is expected to increase Mama's Creations' sales base by nearly 40%. The deal includes a 42,000 square foot production facility in Bay Shore, New York, enhancing Mama's Creations' production capabilities. Around 200 Crown employees will join Mama's Creations as part of the transaction.
Why It's Important?
The acquisition of Crown I Enterprises by Mama's Creations is significant for the U.S. food industry as it strengthens Mama's position as a comprehensive deli solutions provider. By expanding its production footprint, Mama's Creations aims to accelerate its growth towards achieving $1 billion in annual revenue by 2030. This strategic move broadens its customer reach into new accounts, potentially increasing its market share in the prepared foods sector. The acquisition also highlights the ongoing consolidation trend within the food industry, where companies seek to enhance their competitive edge through mergers and acquisitions.
What's Next?
Following the acquisition, Mama's Creations plans to integrate Crown's operations and employees into its existing framework. The company anticipates revenue growth of at least 20% in the second quarter of fiscal 2026, with projected net income reaching $1.2 million. As Mama's Creations continues to expand, it may explore further acquisitions or partnerships to bolster its market presence and achieve its long-term revenue goals.
