Food manufacturers

MamaMancini’s acquires gourmet food makers T&L, Olive Branch for $ 14 million

  • Mamamancini’s Holdings Inc (NASDAQ: MMMB) signed definitive agreements for two acquisitions, T&L Creative Salads Inc and Olive Branch LLC, leading New York-based gourmet food manufacturers, 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 T&L executives.
  • T&L Creative Salads, owned and operated by brothers Anthony, Michael and Joseph Morello, offers a full line of foods for retail food chains, clubs, delis, bagel stores, caterers and distributors . T&L sales are driven by a line of chicken products.
  • Olive Branch started operations six years ago as a separate company to sell olives, olive blends and savory products.
  • Mamamancini expects the acquisition to be substantially accretive to EBITDA and earnings going forward.
  • Anthony Morello will remain CEO of T&L and Olive Branch on a five-year contract.
  • The Company funded the cash payment primarily through cash on hand and a long-term acquisition note of $ 7.5 million.
  • Mamamancini held $ 4.54 million in cash and cash equivalents as of October 31, 2021.
  • The transaction is expected to close on or around December 29, 2021.
  • Price action: MMMB shares are trading up 16.1% to $ 2.24 in the last check Thursday.

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