Latest news with #EchoLakeFoods
Yahoo
02-06-2025
- Business
- Yahoo
Cal-Maine Foods Closes Acquisition of Echo Lake Foods
RIDGELAND, Miss., June 02, 2025--(BUSINESS WIRE)--Cal-Maine Foods, Inc. (NASDAQ: CALM) ("Cal-Maine Foods" or the "Company"), today announced the closing of its acquisition of Echo Lake Foods. The Company announced in April that it signed a definitive agreement to acquire Echo Lake Foods in an all-cash transaction for approximately $258 million, which is expected to provide a tax benefit of ~$28 million equating to an effective purchase price of ~$230 million. Echo Lake Foods produces, packages, markets and distributes ready-to-eat egg products and breakfast foods, including waffles, pancakes, scrambled eggs, frozen cooked omelets, egg patties, toast and diced eggs. Echo Lake Foods had annual revenues of approximately $240 million in 2024 with a five-year CAGR of approximately 10%. Highlights of the Transaction: Compelling Strategic Rationale Allows Cal-Maine Foods to enter the large, growing and highly stable value-added food portion of the egg category Expands strategic customer relationships with retail, quick service restaurant and other food service customers Leverages Cal-Maine Foods' extensive sales and supply chain distribution capabilities Attractive Financial Returns Provides access to additional long-term growth opportunities while reducing earnings volatility Estimated potential $15 million annual synergy opportunity driven by egg purchasing efficiencies and SG&A savings Expected mid-single digit percentage accretion to EPS (including synergies) in FY2026. Sherman Miller, president and chief executive officer of Cal-Maine Foods, stated, "The addition of Echo Lake Foods advances our stated strategy to expand and diversify our product portfolio and customer mix. Echo Lake Foods is a leading innovator with a long history of providing quality ready-to-eat egg products and breakfast foods to a blue-chip customer base. The combined product lines and capabilities of the two companies are highly complementary and, importantly, we share similar values of pursuing operating excellence and meeting the needs of our customers. "The acquisition of Echo Lake Foods meets our disciplined set of investment criteria, including relevant geographic markets, operating synergies, product mix, proximity to customers and expected financial returns. The Echo Lake Foods team has built a terrific business and we look forward to working together on a successful integration, delivering on a unique opportunity for our customers and shareholders, and welcoming Kathy Brodhagen to our leadership team and Echo Lake employees to the Cal-Maine Foods family," added Miller. Goldman Sachs & Co LLC is serving as Cal-Maine Foods, Inc.'s exclusive financial advisor while Sidley Austin LLP is serving as its lead legal advisor. About Cal-Maine Foods Cal-Maine Foods, Inc. is primarily engaged in the production, packaging, marketing and distribution of fresh shell eggs, including conventional, cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs, as well as a variety of ready-to-eat egg products. The Company, which is headquartered in Ridgeland, Mississippi, is the largest producer and distributor of fresh shell eggs in the nation and sells most of its shell eggs throughout the majority of the United States. Forward Looking Statements Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management's current intent, belief, expectations, estimates and projections regarding our Company and our industry. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and may be beyond our control. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include the following, among others: The announcement and completion of our recent Echo Lake Foods acquisition could affect the relationships of the Company (including Echo Lake Foods), with its customers, suppliers, operating results and business generally, including the ability of the Company to retain employees, including in its Echo Lake Foods unit. Also, the Company may experience unexpected challenges in integrating and managing the business of Echo Lake Foods. As a result, integrating Echo Lake Foods' business may be more costly or time consuming than expected. Even if the business of Echo Lake Foods is successfully integrated, the Company may not realize the benefits it expects from the acquisition, including the synergies, cost savings, earnings accretion, reduction in earnings volatility, return of equity, margin expansion, financial returns, tax benefits, expanded customer relationships, or sales or growth opportunities. SEC filings may be obtained from the SEC or the Company's website, Readers are cautioned not to place undue reliance on forward-looking statements because, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. Further, the forward-looking statements included herein are made only as of the respective dates thereof, or if no date is stated, as of the date hereof. Except as otherwise required by law, the Company disclaims any intent or obligation to publicly update these forward-looking statements, whether because of new information, future events, or otherwise. View source version on Contacts Sherman Miller, President and CEOMax P. Bowman, Vice President and CFO(601) 948-6813 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Wire
02-06-2025
- Business
- Business Wire
Cal-Maine Foods Closes Acquisition of Echo Lake Foods
RIDGELAND, Miss.--(BUSINESS WIRE)--Cal-Maine Foods, Inc. (NASDAQ: CALM) ('Cal-Maine Foods' or the 'Company'), today announced the closing of its acquisition of Echo Lake Foods. The Company announced in April that it signed a definitive agreement to acquire Echo Lake Foods in an all-cash transaction for approximately $258 million, which is expected to provide a tax benefit of ~$28 million equating to an effective purchase price of ~$230 million. Echo Lake Foods produces, packages, markets and distributes ready-to-eat egg products and breakfast foods, including waffles, pancakes, scrambled eggs, frozen cooked omelets, egg patties, toast and diced eggs. Echo Lake Foods had annual revenues of approximately $240 million in 2024 with a five-year CAGR of approximately 10%. Highlights of the Transaction: Compelling Strategic Rationale Allows Cal-Maine Foods to enter the large, growing and highly stable value-added food portion of the egg category Expands strategic customer relationships with retail, quick service restaurant and other food service customers Leverages Cal-Maine Foods' extensive sales and supply chain distribution capabilities Attractive Financial Returns Provides access to additional long-term growth opportunities while reducing earnings volatility Estimated potential $15 million annual synergy opportunity driven by egg purchasing efficiencies and SG&A savings Expected mid-single digit percentage accretion to EPS (including synergies) in FY2026. Sherman Miller, president and chief executive officer of Cal-Maine Foods, stated, 'The addition of Echo Lake Foods advances our stated strategy to expand and diversify our product portfolio and customer mix. Echo Lake Foods is a leading innovator with a long history of providing quality ready-to-eat egg products and breakfast foods to a blue-chip customer base. The combined product lines and capabilities of the two companies are highly complementary and, importantly, we share similar values of pursuing operating excellence and meeting the needs of our customers. 'The acquisition of Echo Lake Foods meets our disciplined set of investment criteria, including relevant geographic markets, operating synergies, product mix, proximity to customers and expected financial returns. The Echo Lake Foods team has built a terrific business and we look forward to working together on a successful integration, delivering on a unique opportunity for our customers and shareholders, and welcoming Kathy Brodhagen to our leadership team and Echo Lake employees to the Cal-Maine Foods family,' added Miller. Goldman Sachs & Co LLC is serving as Cal-Maine Foods, Inc.'s exclusive financial advisor while Sidley Austin LLP is serving as its lead legal advisor. About Cal-Maine Foods Cal-Maine Foods, Inc. is primarily engaged in the production, packaging, marketing and distribution of fresh shell eggs, including conventional, cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs, as well as a variety of ready-to-eat egg products. The Company, which is headquartered in Ridgeland, Mississippi, is the largest producer and distributor of fresh shell eggs in the nation and sells most of its shell eggs throughout the majority of the United States. Forward Looking Statements Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management's current intent, belief, expectations, estimates and projections regarding our Company and our industry. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and may be beyond our control. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include the following, among others: The announcement and completion of our recent Echo Lake Foods acquisition could affect the relationships of the Company (including Echo Lake Foods), with its customers, suppliers, operating results and business generally, including the ability of the Company to retain employees, including in its Echo Lake Foods unit. Also, the Company may experience unexpected challenges in integrating and managing the business of Echo Lake Foods. As a result, integrating Echo Lake Foods' business may be more costly or time consuming than expected. Even if the business of Echo Lake Foods is successfully integrated, the Company may not realize the benefits it expects from the acquisition, including the synergies, cost savings, earnings accretion, reduction in earnings volatility, return of equity, margin expansion, financial returns, tax benefits, expanded customer relationships, or sales or growth opportunities. SEC filings may be obtained from the SEC or the Company's website, Readers are cautioned not to place undue reliance on forward-looking statements because, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. Further, the forward-looking statements included herein are made only as of the respective dates thereof, or if no date is stated, as of the date hereof. Except as otherwise required by law, the Company disclaims any intent or obligation to publicly update these forward-looking statements, whether because of new information, future events, or otherwise.
Yahoo
16-04-2025
- Business
- Yahoo
Cal-Maine to buy breakfast foods manufacturer for $258M
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. Cal-Maine, the largest egg producer in the U.S., said it will acquire breakfast foods maker Echo Lake Foods for $258 million as the company looks to offer consumers more than just cartons of eggs. Burlington, Wisconsin-based Echo Lake Foods manufactures ready-to-eat egg products in addition to breakfast foods like waffles, pancakes, scrambled eggs, frozen cooked omelets and more. Cal-Maine said the transaction allows it to access the 'growing and highly stable value-added food portion of the egg category.' Last September, Cal-Maine entered a joint venture with egg wrap maker Crepini in a bid to expand its portfolio. As egg prices remain volatile, Cal-Maine is looking to grow its presence in processed foods and other spaces considered more financially stable. 'Our shell egg business will remain the core of Cal-Maine Foods, but we are excited to diversify our product mix, reduce financial volatility and add another growth opportunity to the Company with the proposed Echo Lake Foods transaction,' Sherman Miller, Cal-Maine president and CEO, said in a statement. The Echo Lake purchase stands to expand Cal-Maine's customer base outside the grocery store and to quick-service restaurants and other foodservice customers. Kathy Brodhagen, current chief executive officer of Echo Lake Foods, will join Cal-Maine's senior management team as president of Echo Lake Foods. 'This transaction represents an exciting growth opportunity and important inflection point for Cal-Maine Foods, advancing our strategy to expand and diversify our product portfolio and customer mix,' Miller said. Sky-high egg prices have sent Cal-Maine's profits soaring, with net sales in the third quarter doubling over the same period last year. Although consumer egg demand overall has begun to dip, Cal-Maine sold a record 331.4 million dozen shell eggs in the third quarter, a 10.2% increase, in part due to recent acquisitions. Devastating bird flu outbreaks have wiped out chicken flocks and pushed egg prices to record highs. Cal-Maine has faced scrutiny over prices, and is participating in a Department of Justice investigation into the higher consumer costs. Recommended Reading Egg prices hit another record high ahead of Easter Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Cal-Maine Foods to buy breakfast-foods business Echo Lake Foods
US egg major Cal-Maine Foods has agreed to acquire Echo Lake Foods, a breakfast foods manufacturer. In a statement accompanying its third quarter results, Cal-Maine said it had 'entered into a definitive agreement' to buy the Wisconsin-based company for approximately $258m. Founded in 1941, Echo Lake Foods was acquired by the Meinerz family in 1981. The company produces, packages and distributes a range of ready-to-eat egg products and breakfast items, such as waffles, pancakes, diced eggs and frozen cooked omelettes among others. According to Cal-Maine, the breakfast-foods business reported approximately $240m in revenue in 2024, with a five-year compound annual growth rate of around 10%. The egg group said the deal, which excludes expected tax assets, will be funded using existing cash reserves. Commenting on the deal, Cal-Maine Foods president and CEO Sherman Miller said: 'This transaction represents an exciting growth opportunity and important inflection point for Cal-Maine Foods, advancing our strategy to expand and diversify our product portfolio and customer mix. 'The combined product lines and capabilities of the two companies are highly complementary and, importantly, we share similar values of pursuing operating excellence and meeting the needs of our customers. 'We believe the potential acquisition of Echo Lake Foods meets our disciplined set of investment criteria, including relevant geographic markets, operating synergies, product mix, proximity to customers and expected financial returns', Miller added. The boards of directors of both the companies have approved the deal, and is expected to be completed by the end of fiscal 2025. Following completion of the transaction, Echo Lake Foods will continue to run as a 'stand-alone component of Cal-Maine Foods' integrated operations with its four production facilities strategically located across the Midwest", the statement added. As part of the deal, Echo Lake CEO Kathy Brodhagen will become part of Cal-Maine's senior leadership as president of Echo Lake Foods. Cal-Maine said the acquisition would enable it "to enter the large, growing and highly stable value-added food portion of the egg category'. The deal, it added would also provide an opportunity to grow 'strategic customer relationships with retail, quick service restaurant and other foodservice customers'. Cal-Maine also expects to leverage its existing sales and distribution infrastructure to support Echo Lake's operations, and to realise 'significant synergies' in egg procurement and operational efficiencies. The acquisition was announced as part of Cal-Maine's third-quarter fiscal 2025 results. For the thirteen weeks ended 1 March, the company reported net sales of $1.4bn versus $703.1m a year ago, driven by higher average selling prices and increased volumes. Gross profit for the group increased more than 200% to $716m in the period. The latest deal comes after Cal-Maine Foods reached an agreement that will see its founding family relinquish the bulk of its voting power while keeping its economic interest. In July, the US-based egg supplier acquired 'substantially' all of the assets of local peer ISE America and 'certain affiliates' for around $110m. "Cal-Maine Foods to buy breakfast-foods business Echo Lake Foods" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
