Mama's Creations Acquires Crown I Enterprises for $17.5 Million, Expanding Production Capabilities

What's Happening?

Mama’s Creations, Inc., a company known for manufacturing fresh deli prepared foods, has acquired Crown I Enterprises Inc. from Sysco Corp. for $17.5 million in an all-cash transaction. This acquisition is expected to boost Mama’s Creations' sales by nearly 40%. Crown I Enterprises, which specializes in value-added proteins and ready-to-eat meals, operates a 42,000-square-foot production facility in Bay Shore, NY. This facility, located approximately 10 miles from Mama’s Creations' existing Farmingdale location, will enhance the company's production and warehousing efficiency. The acquisition also includes approximately 200 employees from Crown I Enterprises. Sysco had owned Crown I Enterprises since August 2019, following its acquisition of J. Kings Food Service Professionals.

Why It's Important?

The acquisition of Crown I Enterprises by Mama’s Creations is significant as it represents a strategic expansion of the company's production capabilities and market reach. By integrating Crown's operations, Mama’s Creations aims to enhance its service to new customers and expand its product penetration across Crown's premium customer base. This move aligns with Mama’s Creations' broader strategy to consolidate its position in the deli solutions market, aiming to become a $1 billion provider by 2030. The acquisition is also indicative of the company's ongoing merger and acquisition strategy, which has previously included the acquisitions of Creative Salads, Olive Branch, and Chef Inspirational Foods. This strategic growth is expected to provide Mama’s Creations with increased market leverage and operational synergies.

What's Next?

Following the acquisition, Mama’s Creations plans to integrate Crown I Enterprises' operations seamlessly into its existing framework. The company anticipates leveraging the proximity of the new facility to enhance production and distribution efficiencies. Additionally, Mama’s Creations is likely to focus on cross-selling opportunities to expand its product offerings to Crown's established customer base. The company’s leadership, including CEO Adam L. Michaels, has expressed confidence in the acquisition's potential to accelerate growth and build capabilities, suggesting further strategic acquisitions may be pursued to continue this trajectory.