What's Happening?
Mama's Creations, Inc., a national marketer and manufacturer of fresh deli prepared foods, has acquired Crown I Enterprises, a manufacturer of value-added proteins and ready-to-eat meals. The acquisition, valued at $17.5 million, is expected to increase Mama's Creations' revenue by $56 million annually, broadening its customer base and enhancing production capabilities. Crown I, previously a subsidiary of Sysco Corporation, operates a USDA-certified facility in Bay Shore, NY, which will expand Mama's production capacity and management synergies. The acquisition is financed through a private placement and a credit facility with M&T Bank.
Why It's Important?
This acquisition is significant for Mama's Creations as it strategically enhances its production capabilities and customer reach, particularly into premium retail accounts. By integrating Crown I's operations, Mama's Creations aims to improve service delivery, product quality, and financial performance. The deal is expected to unlock new revenue opportunities through cross-selling, positioning Mama's Creations closer to its goal of reaching $1 billion in annual revenue by 2030. The acquisition also reflects Mama's Creations' strategy of consolidating the deli solutions market, following previous acquisitions.
What's Next?
Mama's Creations plans to integrate Crown I's operations seamlessly, leveraging proximity to its existing facilities for efficiency. The company anticipates discussing the acquisition in detail during its upcoming earnings call. The private placement associated with the acquisition is expected to close soon, subject to customary conditions. Mama's Creations will continue to focus on expanding its product penetration across Crown I's customer base, aiming for operational efficiencies and increased gross margins.
