This acquisition is part of Mama’s strategic plan to consolidate the deli solutions space by acquiring profitable, synergistic businesses at attractive multiples, reinforcing its growth ambitions.

He emphasized that the deal fits into Mama’s broader M&A strategy to consolidate in the deli solutions space and improve operational synergies.

The $17.5 million all-cash deal was financed through a combination of private placement with institutional investors and a credit facility with M&T Bank, at an attractive 0.3x FY25 revenue multiple.

Mama’s Creations has acquired Crown I Enterprises for $17.5 million, significantly boosting its revenue and production capacity, with the deal adding approximately $56 million in profitable annual sales.

The transaction is expected to be accretive, offering operational efficiencies, potential cost savings, and strategic growth opportunities, with a low pre-synergy net leverage of less than 1x EBITDA.

Mama’s aims to gain immediate capacity, access new high-end customers, and leverage scale efficiencies to improve margins and operational performance.

The strategic rationale also includes expanding into new customer channels, sharing best practices, and cross-selling products to grow revenue.

CEO Adam L. Michaels highlighted that the acquisition enhances capabilities, provides access to premium customers, and aligns with the company's goal of reaching $1 billion in annual revenue by 2030.

Mama’s anticipates a 20% revenue increase to at least $34 million and net income of at least $1.2 million in Q2 FY2026, with a conference call scheduled for September 8, 2025.

The deal includes a newly upgraded 42,000-square-foot USDA-certified manufacturing facility in Bay Shore, NY, near Mama’s existing operations, with about 200 employees, enhancing operational efficiency and management capacity.

Management highlighted the cultural fit, operational synergies, and growth potential of Crown, noting its alignment with Mama’s standards and expansion plans, with financial updates expected on September 8, 2025.

Mama’s plans to fund the acquisition with a combination of existing credit facilities and a private placement, expected to raise around $20 million by issuing 2,666,667 shares at $7.50 per share, closing around September 3, 2025.