MamaMancini’s Holdings, an East Rutherford, New Jersey, USA-based marketer of specialty pre-prepared, frozen and refrigerated meat and poultry products, has signed definitive agreements for acquisitions of T&L Creative Salads and Olive Branch LLC, which are related premier gourmet food manufacturers headquartered in New York. The deal is expected to be finalized on or about December 29, 2021, subject to closing conditions.
Over several decades, brothers Anthony, Michael, and Joseph Morello have owned and operated T&L Creative Salads, offering a full line of foods to retail food chains and club stores, delis, bagel shops, caterers and distributors in the New York metropolitan area and beyond. The company uses high-quality meats, seafood and vegetables, prepared to meet the standards set forth by the USDA and the FDA.
T&L sales are spearheaded by a line of chicken products, including grilled and breaded chicken breasts and chicken strips, as well as a kosher salad line. Its SQF Level 2 state-of-the-art USDA facility in Farmingdale, New York is positioned to expand operations nationally into MamaMancini’s network of retailer supermarkets and club stores.
Olive Branch started operations six years ago as a separate company to concentrate on selling olives, olive mixes, and savory products to a limited number of large retail customers, primarily in pre-packaged containers. Its products are manufactured at the T&L production facility.
MamaMancini’s management believes that taken together, T&L and Olive Branch will generate over $30 million in revenue in calendar 2021, with potential to drive sales to $35 million in 2022 and significantly increase MamaMancini’s net income.
T&L and Olive Branch are being acquired for a combined purchase price of $14 million, including $11 million in cash at closing and $3 million in a four-year note to the seller’s principals. The payment is chiefly funded through the MamaMancini’s cash on hand and a $7.5 million long-term acquisition note from M&T Bank.
Anthony Morello, who will remain as chief executive officer of T&L with a five-year contract, commented: “We are excited to become part of the MamaMancini’s team and believe we can rapidly expand sales as well as incorporate their best practices across both T&L and Olive Branch, helping to create value for MamaMancini’s shareholders.”
MamaMancini’s CEO Carl Worlf added: “This 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 product companies generating positive EBITDA with a product that is symbiotic to their existing distribution network.”
About MamaMancini’s
The extensive portfolio of MamaMancini’s Holdings’ consists of over 40 products including meatballs, meat loaf, chicken parmesan, sausages and pasta bowl kits featuring with beef, turkey, chicken and pork varieties. Its offerings are sold at over 45,000 locations throughout the USA, including retail stores such as Sam’s Club, Whole Foods, Publix, Costco and Albertsons, as well as through national distributors including Sysco and United Natural Foods. The company also regularly maintains a direct-to-consumer presence through presentations on QVC.
