MamaMancini’s, a leading supplier of Italian-style food, plans to acquire Chef Inspirational Foods Inc. (CIF), a fresh and frozen prepared-foods business on Long Island, N.Y.

After taking a 24% minority interest in CIF in June 2022, the East Rutherford-based company retained an option to purchase the remaining stake within 12 months, which it chose to exercise late last month when Mama Mancini’s announced plans to purchase 76% interest for $3.65 million.

Under the terms of the deal announced June 29, $2.15 million of the purchase price is payable in cash in two tranches – one due immediately at closing and the second in June 2024. A $1.5 million common stock component is payable in June 2025, based on the market price of MamaMancini’s common stock at that time, the company said.

Adam Michaels, who took over as chief executive officer and chairman of MamaMancini’s in September 2022, said in a statement he was pleased to follow through with the minority interest acquisition made by his predecessor, Carl Wolf, and the ability to exercise the option to purchase the remaining portion under such favorable terms.

“While I don’t anticipate a significant sales impact in the immediate-term given our T&L [Creative Salads] subsidiary was CIF’s largest co-manufacturer, I am confident that this acquisition could immediately enhance our company-level gross margins by 1-2%, further building upon our near-term goal of a high-20% gross margin profile. 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,” he stated.

Michaels went on to say, “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.”

Founded in 2010, MamaMancini’s makes and distributes all natural beef, turkey, chicken and pork meatballs as well as other similar Italian products.

The company currently has more than 45,000 product placements nationally in grocery, mass, club and convenience stores, including: Albertsons, Costco, FoodTown, Hy Vee, Key Foods, Kings, Kroger, Publix, Sam’s Club, Whole Foods, ShopRite, Stop & Shop, The Fresh Market, Safeway and King Kullen.

With operations in New York and Florida, CIF sells fresh and frozen prepared foods for supermarkets, club stores and distributor trade across the U.S. The 15-year-old company’s specialty is the products for the deli department, providing prepared salads, prepared entrees and olives in a range of artisan flavors and styles.