MamaMancini's Holdings Inc. has agreed to buy a 24% minority interest in Chef Inspirational Foods, Inc. for $1.2 million – consisting of $0.50 million in cash and $0.70 million in MamaMancini's common stock. The deal would imply an enterprise value of $5 million for Chef Inspirational Foods (CIF).
Under the terms of the agreement, MamaMancini's would retain the option to acquire the remaining 76% interest in the company within one year.
"We expect our investment into CIF to be immediately accretive to net income, while our option to purchase the remainder of the company at a set price provides significant optionality and upside potential," mentioned CEO Carl Wolf.
Chef Inspirational Foods sells fresh and frozen prepared foods for the supermarket, and distributor trade across the U.S. Its specialty includes prepared salads, prepared entrees and olives, with various artisan flavors.