- Mamamancini's Holdings Inc (NASDAQ:MMMB) has signed definitive agreements for two acquisitions, T&L Creative Salads Inc and Olive Branch LLC, premier gourmet food manufacturers based in New York, for a combined purchase price of $14 million.
- The purchase price includes $11 million in cash at closing and $3 million in a four-year note to the principals of T&L.
- T&L Creative Salads, owned and operated by brothers Anthony, Michael, and Joseph Morello, offers a full line of foods for retail food chains, club stores, delis, bagel stores, caterers, and distributors. T&L sales are spearheaded by a line of chicken products.
- Olive Branch started operations six years ago as a separate company to sell olives, olive mixes, and savory products.
- Mamamancini's expects the acquisition to be substantially accretive to EBITDA and earnings in the future.
- Anthony Morello will remain as CEO of T&L and Olive Branch with a five-year contract.
- The company funded the cash payment chiefly through cash on hand and a $7.5 million long-term acquisition note.
- Mamamancini's held $4.54 million in cash and equivalents as of October 31, 2021.
- The deal is expected to be closed on or about December 29, 2021.
- Price Action: MMMB shares are trading higher by 16.1% at $2.24 on the last check Thursday.
