Mama's Creations Acquires Crown I For $17.5M In All-Cash Deal; Expanding Production Capacity And Revenue By $56M; Financing Secured Via $20M Private Placement And $27.4M Credit Facility

Strategic Acquisition from Sysco to Expand Customer Base and Production Capabilities; Crown I Generated $56M in Profitable Revenue in FY25 at Marquee Retailer Partners 

$17.5 Million All-Cash Acquisition, at Attractive 0.3x FY25 Revenue Multiple, to be Fully Financed by Private Placement with Institutional Investors and Long-Term Credit Facility with M&T Bank

EAST RUTHERFORD, NJ, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Mama's Creations, Inc. (NASDAQ:MAMA) (the "Company" or "Mama"), a leading national marketer and manufacturer of fresh deli prepared foods, today announced it has acquired substantially all of the assets of Crown I Enterprises Inc. ("Crown"), a full-service manufacturer of value-added proteins and ready-to-eat meals and wholly owned subsidiary of Sysco Corporation.

Crown brings approximately $56 million in profitable annual revenue to Mama's Creations based on results for the fiscal year ended June 28, 2025, increasing the Company's sales base by nearly 40% and significantly broadening its customer reach into strategic new accounts. It primarily serves ‘hard to break into', premium retail partners who are not current Mama's customers – complementing the Company's existing roster and opening new channels for potential growth.

The acquisition also adds new strategic capabilities such as a recently upgraded and expanded 42,000-square-foot USDA-certified production facility in Bay Shore, NY – complete with significant incremental grill capacity on equipment Mama already runs – along with approximately 200 employees, which will expand Mama's Creations' production capacity and create enhanced ‘bench strength' for management. Proximity to the Company's existing Farmingdale location, about 10 miles away, provides for production and warehousing efficiency in addition to management synergies.

While expected to be accretive, the core rationale is to build capabilities: new capacity on familiar equipment, instant access to premium customers, and aligned ‘Grandma Quality' standards. Bringing Crown into the Mama's family will allow best practice sharing, scale efficiencies and new opportunities to enhance operational and SG&A execution – which should ultimately allow Mama's to deliver better service for customers, tastier products for consumers and improved financial performance.

In addition to potential cost savings, the deal is expected to unlock new revenue opportunities through cross-selling. Mama's Creations plans to cross sell its existing product lines to Crown's customers (and vice versa) to drive incremental sales and increase Mama's Average Items Carried across a broader retail footprint. Overall, this strategic combination bolsters Mama's position as a one-stop-shop deli solutions platform with a robust poultry, beef and prepared foods production footprint and accelerates the Company's progress toward its goal of reaching $1 billion in annual revenue by 2030.

Transaction Consideration

Mama's Creations will acquire the Crown business for $17.5 million in cash, subject to customary adjustments. The all-cash transaction will be funded in part through an amended and restated $27.4 million senior secured credit facility with M&T Bank (the Company's existing lender). Pre-synergy net leverage at closing is expected to be less than 1x EBITDA.

Mama's Creations today also announced that it has entered into a securities purchase agreement for a private placement that is expected to result in gross proceeds of approximately $20.0 million to the Company before deducting placement agent fees and offering expenses. The private placement is expected to close on or about September 3, 2025, subject to the satisfaction of customary closing conditions. Pursuant to the terms of the securities purchase agreement, Mama's Creations is selling an aggregate of 2,666,667 shares of its common stock at a purchase price of $7.50 per share. The Company has agreed to file one or more registration statements with the Securities and Exchange Commission ("SEC") for the resale of the common stock sold in the private placement.

Lake Street Capital Markets served as exclusive financial advisor to Mama's Creations in the acquisition and as sole placement agent for the private placement. Faegre Drinker Biddle & Reath LLP served as legal counsel to Mama's Creations in both the acquisition and the private placement.