Mama's Creations Acquires Fresh Protein Manufacturer Crown I Enterprises

Core Viewpoint - Mama's Creations, Inc. has acquired Crown I Enterprises Inc. for $17.5 million in cash, significantly expanding its customer base and production capabilities, with Crown contributing approximately $56 million in profitable annual revenue [1][2][6]. Acquisition Details - The acquisition is fully financed through a private placement with institutional investors and a long-term credit facility with M&T Bank [1][6]. - The deal is valued at an attractive 0.3x FY25 revenue multiple, indicating a favorable acquisition cost relative to revenue [1][11]. Financial Impact - The acquisition is expected to increase Mama's Creations' sales base by nearly 40%, enhancing its reach into premium retail partners not currently served [2][5]. - The company anticipates revenue growth of at least 20% in the second quarter of fiscal 2026, projecting revenue of at least $34 million compared to $28.4 million in the same quarter of the previous year [12]. Strategic Capabilities - The acquisition includes a 42,000-square-foot USDA-certified production facility, which will enhance production capacity and operational efficiencies [3][4]. - Mama's Creations plans to leverage cross-selling opportunities between its existing product lines and Crown's customer base to drive incremental sales [5][10]. Management Commentary - The CEO of Mama's Creations expressed confidence in the acquisition, highlighting the alignment of operational capabilities and quality standards between the two companies [10][11]. - The management believes that operational efficiencies and joint protein purchasing will improve Crown's gross margins over time, aligning them closer to Mama's current levels [11]. Future Outlook - The acquisition is part of Mama's strategy to become a leading deli solutions provider, aiming for $1 billion in annual revenue by 2030 [5][11]. - The company is positioned as a consolidator in the industry, having previously acquired Creative Salads & Olive Branch and Chef Inspirational Foods [11].