Mama's Creations Gains Momentum as Analysts Highlight Acquisition Benefits

Mama's Creations stock rose over 10% after the company acquired Crown I Enterprise's assets, including a 42,000-square-foot manufacturing facility in New York. Analysts point to scale benefits from the acquisition, although specific details about the deal are not mentioned in the article. The acquisition is expected to enhance Mama's Creations' capabilities in the fresh food manufacturing industry.

Mama's Creations, Inc. (Nasdaq: MAMA), a leading marketer and manufacturer of fresh deli prepared foods, experienced a significant boost in stock performance following the announcement of its acquisition of Crown I Enterprises Inc. [1]. The stock rose over 10% on September 2, 2025, as investors reacted positively to the strategic move.

The acquisition, valued at $17.5 million in cash, includes a 42,000-square-foot manufacturing facility in Bay Shore, New York, along with approximately $56 million in profitable annual revenue and 200 employees [1]. The facility, which is USDA-certified, complements Mama's Creations' existing production capabilities and expands its reach into premium retail partners, primarily in the Northeast and Mid-Atlantic regions [1].

Analysts have pointed to potential scale benefits from the acquisition, including increased production capacity and enhanced operational efficiencies. The acquisition is expected to bolster Mama's Creations' position as a one-stop-shop deli solutions platform, with a robust poultry, beef, and prepared foods production footprint [1]. The company aims to leverage the acquisition to accelerate its progress toward reaching $1 billion in annual revenue by 2030.

Mama's Creations will fund the acquisition through an amended and restated $27.4 million senior secured credit facility with M&T Bank, along with a private placement expected to generate approximately $20.0 million in gross proceeds [1]. The transaction is expected to be accretive and is anticipated to unlock new revenue opportunities through cross-selling.

Adam L. Michaels, Chairman and CEO of Mama's Creations, commented on the acquisition, highlighting the company's respect for Crown's "Grandma Quality" principles and the potential for operational efficiencies and increased customer service [1]. He also expressed excitement about the opportunity to expand the company's product penetration across Crown's premium customer base.

The acquisition is expected to be accretive to earnings, with the company projecting at least 20% revenue growth and a net income of at least $1.2 million in the second quarter of fiscal 2026 [1]. Mama's Creations will provide a preview of these financial results during its investor conference call on September 8, 2025.

References:
[1] https://www.globenewswire.com/news-release/2025/09/02/3142699/36226/en/Mama-s-Creations-Acquires-Fresh-Protein-Manufacturer-Crown-I-Enterprises.html