New Acquisitions Expected to generate $ 35 million in sales in 2022; Very symbiotic with the existing MamaMancini distribution network
$ 14 Mmillions Acquisition Funded in cash at hand aD Long term To note with M&T Bank
EAST RUTHERFORD, NJ, December 23, 2021 (GLOBE NEWSWIRE) – MamaMancini’s Holdings, Inc. (NASDAQ: MMMB), a distributor of pre-prepared, frozen and chilled food specialties, today announced the signing of definitive agreements for two acquisitions – T&L Creative Salads, Inc. (“T&L”) and Olive Branch, LLC , who are leading gourmet food related manufacturers based in New York City. The closing is expected to occur on or around December 29, 2021, subject to the closing conditions.
For several decades, brothers Anthony, Michael and Joseph Morello have owned and operated T&L Creative Salads, offering a full line of foods for retail food chains and club stores, delis, bagel stores, caterers and distributors. T&L uses high quality meats, seafood and vegetables, prepared to meet standards set by the USDA and FDA.
T&L sales are driven by a line of chicken products, including grilled and breaded chicken breasts, chicken strips as well as a line of kosher salads. T & L’s state-of-the-art USDA SQF Level 2 facility in Farmingdale, NY has positioned it to expand nationwide operations into MamaMancini’s dealer and club store network . T&L actively sells its salads and prepared products to more than 250 delicatessens, bagel stores, small retailers and food distributors in the New York metropolitan area, representing over 35% of T & L’s current sales volume.
Olive Branch started operations six years ago as a separate business to focus on selling olives, olive blends and savory products to a limited number of large retail customers, mostly in containers. prepackaged. Olive Branch products are manufactured in the same factory as T&L in Farmingdale, NY.
MamaMancini management estimates that, taken together, T&L and Olive Branch are positioned to generate more than $ 30 million in sales in calendar year 2021, have the potential to generate sales of $ 35 million in 2022, and to significantly increase MamaMancini’s net income. Management further believes that there are significant growth opportunities by leveraging MamaMancini’s Tier 1 channel partner network associated with the newly acquired product portfolio, which have relatively limited domestic distribution at present.
MamaMancini’s will acquire T&L and Olive Branch for a combined purchase price of $ 14.0 million, including $ 11 million in cash at closing and $ 3 million in a four-year note to T&L executives. The cash payment was primarily funded by cash from MamaMancini and a $ 7.5 million long-term acquisition note from M&T Bank. Management’s analysis is that this acquisition will 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.
Anthony Morello, CEO of T&L, said: “We are delighted to be part of the MamaMancini team and believe that we can grow sales quickly and integrate their best practices into both T&L and Olive Branch, thus helping to create value for MamaMancini shareholders.
Carl Wolf, CEO of MamaMancini’s, added: “With T & L’s decidedly unique products, we believe we can achieve a substantial increase in sales and EBITDA in the rapidly growing fresh prepared foods section. We plan to quickly integrate T&L and Olive Branch into the MamaMancini distribution network, which would continue to build on our growth trajectory, leveraging established national distribution partnerships. In addition, T & L’s manufacturing facilities are available to increase MamaMancini’s production capabilities, particularly in the new line of ready-to-eat meals.
“This announcement marks the first step in our growth-through-acquisition strategy as we advance promising candidates through our due diligence pipeline. We continue to see attractive multiples in the food space with complementary food companies generating positive EBITDA with a product that is in symbiosis with their existing distribution network. I look forward to continuing to create shareholder value in the coming months as we continue our rapid pace of operational execution, ”concluded Wolf.
About MamaMancini’s Holdings, Inc.
MamaMancini’s Holdings, Inc. (NASDAQ: MMMB) is a distributor and marketer of all-natural Italian prepared, chilled and frozen foods. MamaMancini’s product portfolio includes over 40 products including meatballs, meatloaf, chicken parmesan, sausage and pasta bowl kits, with varieties of beef, turkey, chicken and pork. The company’s products are sold in more than 45,000 locations nationwide, including well-known retailers such as Sam’s Club, Whole Foods, Publix, Costco and Albertsons, as well as through national distributors such than Sysco and United Natural Foods. The Company also regularly maintains a direct presence with consumers through presentations on QVC. For more information, please visit www.mamamancinis.com.
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. “Forward-looking statements” describe expectations, plans, results or strategies and are usually preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected”, “anticipate”, “draft” , “Possibly” or “projected.” You are cautioned that these statements are subject to a multitude of risks and uncertainties which could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements, including including the risks that actual results may differ materially from those projected.in forward-looking statements due to various factors and other risks identified in the Company’s 10-K for the year ended Jan. 31 er 2021 and other documents filed by the Company with the Securities and Exchange Commission.