Closing is expected to occur on or about Dec. 29, subject to conditions.
T&L Creative Salads has been a supplier to retail food chains and club stores, delis, bagel stores, caterers and distributors for decades, offering meats, seafood and vegetables. The company operates a facility in Farmingdale, N.Y., and counts about 250 retail outlets and food distributors in the New York metropolitan area as customers.
Olive Branch began operating six years ago as a separate company to concentrate on selling olives, olive mixes and savory products to a select number of large retail customers. Olive Branch products are manufactured at the same facility as T&L.
According to a Dec. 23 announcement, T&L and Olive Branch are positioned to generate more than $30 million in sales in calendar 2021, have the potential to drive sales of $35 million in 2022 and significantly increase MamaMancini’s net income.
The transaction includes $11 million in cash at closing and $3 million in a four-year note to the principals of T&L. The purchase was chiefly funded through MamaMancini’s cash on hand and a $7.5 million long-term acquisition note from M&T Bank.
Anthony Morello will remain as CEO of T&L and Olive Branch with a five-year contract.
“With T&L’s decidedly unique products, we believe that we can achieve a substantial increase in sales and EBITDA in the rapidly growing fresh prepared food section. We plan to quickly integrate T&L and Olive Branch into MamaMancini’s distribution network which would continue to build on our growth trajectory, leveraging established national distribution partnerships,” MamaMancini’s CEO Carl Wolf said in a statement. “In addition, T&L’s manufacturing facilities are available to augment MamaMancini’s production capabilities, particularly in the new ready to eat meals product line.”
The buyer markets and distributes about 40 products including meatballs, meat loaf, chicken parmesan, sausages and pasta bowl kits, with beef, turkey, chicken and pork varieties.
Wolf said that the deal marks the first move in the company’s growth-through-acquisition strategy and that MamaMancini’s continues to examine promising targets.
“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,” he said.[/vc_column_text][/vc_column][/vc_row]
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