Acquisition news came across our desks from MamaMancini’s Holdings, as the marketer and manufacturer of fresh deli-prepared foods announced it purchased the remaining 76 percent interest in Chef Inspirational Foods (CIF).
“I am pleased to follow through on my predecessor’s acquisition of a minority interest in CIF, exercising our option to acquire the remaining portion on more favorable terms leveraging our cash on hand. While I don’t anticipate a significant sales impact in the immediate term given our T&L subsidiary was CIF’s largest co-manufacturer, I am confident that this acquisition could immediately enhance our company-level gross margins by 1–2 percent, further building upon our near-term goal of a high-20 percent gross margin profile,” Adam L. Michaels, Chairman and Chief Executive Officer, said. “In addition to the sales expertise of CIF and exciting new cross-selling opportunities, I expect to realize meaningful overhead synergies that will reduce operating expenses and provide us with additional freight capabilities.”
The remaining 76 percent interest in CIF was purchased for $3.65 million at an implied enterprise value of $4.8 million. The release noted this follows MamaMancini’s June 2022 acquisition of a 24 percent minority interest, making the provider the full owner.
“...With this transaction complete, we can now focus on optimizing the operations of our combined company, building out our sales organization, and seeking out my first acquisition as CEO of MamaMancini’s. I look forward to continued momentum in the months ahead as we strive to create sustainable value for my fellow shareholders over the long term,” concluded Michaels.
More information can be found here.
DMN will keep a pulse on the wire for more acquisitions and movements in our industry.
