2023-06-29 09:09:47 ET
- MamaMancini's ( NASDAQ: MMMB ) said Thursday it acquired the remaining 76% interest in Chef Inspirational Foods, a deli prepared food company, for $3.65M in cash and stock at an implied enterprise value of $4.8M.
- This follows last year's acquisition of a 24% minority interest in Chef Inspirational.
- The $2.15M cash component of the purchase price for the 76% stake is payable in two tranches, one due immediately at closing and the second in June 2024.
- The $1.5M stock component is payable in June 2025.
- The acquisition is expected to be accretive, and drive immediate gross margin and operating expense synergies.
- "I don't anticipate significant sales impact in the immediate term given our T&L unit was CIF's largest co-manufacturer," said MamaMancini's ( MMMB ) CEO Adam Michaels.
- "This acquisition could immediately enhance our company-level gross margins by 1-2%, further building on our near-term goal of a high-20% gross margin profile," he added.
- Earlier, MamaMancini's priced a secondary stock offering .
For further details see:
MamaMancini's buys remaining stake in Chef Inspirational Foods for $3.65M