MamaMancini's Acquires Gourmet Food Manufacturers T&L, Olive Branch For $14M

Mamamancini's Holdings Inc MMMB has signed definitive agreements for two acquisitions, T&L Creative Salads Inc and Olive Branch LLC, premier gourmet food manufacturers based in New York, for a combined purchase price of $14 million.
The purchase price includes $11 million in cash at closing and $3 million in a four-year note to the principals of T&L.
T&L Creative Salads, owned and operated by brothers Anthony, Michael, and Joseph Morello, offers a full line of foods for retail food chains, club stores, delis, bagel stores, caterers, and distributors. T&L sales are spearheaded by a line of chicken products.
Olive Branch started operations six years ago as a separate company to sell olives, olive mixes, and savory products.
Mamamancini's expects the acquisition to be substantially accretive to EBITDA and earnings in the future.
Anthony Morello will remain as CEO of T&L and Olive Branch with a five-year contract.
The company funded the cash payment chiefly through cash on hand and a $7.5 million long-term acquisition note.
Mamamancini's held $4.54 million in cash and equivalents as of October 31, 2021.
The deal is expected to be closed on or about December 29, 2021.
Price Action: MMMB shares are trading higher by 16.1% at $2.24 on the last check Thursday.