Latest news with #ShermanMiller
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
30-04-2025
- Business
- Yahoo
US egg producer defends record profits amid DOJ probe — how to manage high prices without poaching your budget
It's hardly a secret that Americans have been paying a premium for eggs these past few months. But while consumers are struggling to afford this grocery staple, one egg company is allegedly profiting big time. Cal-Maine Foods — which calls itself "the largest producer and distributor of fresh shell eggs in the United States" — recently reported a net income of $508.5 million for its most recent fiscal quarter. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Now, the U.S. Department of Justice (DOJ) is reportedly investigating Cal-Maine in order to determine whether the company is guilty of price fixing. Straight Arrow News reports the company enjoyed a nearly 250% increase in profits from a year prior, and that Cal-Maine attributes its profits to an 80% rise in the cost of eggs. Sherman Miller, president and CEO of Cal-Maine Foods, told Business Wire, "The entire Cal-Maine Foods team did an outstanding job in maximizing production through a period of high demand, while operating safely and maintaining diligence on biosecurity measures. "We were fortunate to have the ability to utilize our existing operational scale and to benefit from recent acquisitions, which helped increase our production capacity in this challenging supply environment." In March of 2025, egg prices in America reached a record high of $6.23 per dozen, according to the Bureau of Labor Statistics. Given that eggs are a staple in many households, consumers had no choice but to pay up. But now, the DOJ is wondering whether something shady was happening on Cal-Maine's part. The company, along with others, is being investigated after being accused by advocacy groups of price fixing. Price fixing occurs when competing companies enter into an agreement to keep prices intentionally high to boost their profits. Companies tend to have an easier time setting prices high when there's a shortage of a given commodity. Cal-Maine claims that it made great progress in addressing the country's egg shortage this past quarter by increasing its amount of layer hens by 14% and investing in safety measures to combat the avian flu, per Straight Arrow News. The company has also since dropped its egg prices and says it's cooperating with the DOJ investigation. The company, however, maintains that it didn't engage in any wrongdoing. Rather, it says that higher market prices came as a result of reduced supply during a period of 'peak seasonal demand for eggs and egg products,' reports Food Engineering Magazine. However, this isn't the first time Cal-Maine has faced legal trouble. In 2023, Cal-Maine and other egg producers were found guilty of price fixing and were required to pay out more than $50 million. But this time around, it's unclear as to whether there's any wrongdoing at play. Emily Metz — president and CEO of American Egg Board, which represents egg producers across the country — said that accusing companies of egg price fixing is "misreading of facts and reality," according to ABC News. Read more: This hedge fund legend warns US stock market will crash a stunning 80% — claims 'Armageddon' is coming. Don't believe him? He earned 4,144% during COVID. Here's 3 ways to protect yourself CBS MoneyWatch reports that wholesale egg prices have fallen 43% since the start of the year. Egg prices at Stew Leonard's, a Northeast grocery chain, have declined recently, and director of sales Andrew Hollis had encouraging words for consumers. "We're definitely back to low-price eggs again,' Hollis told CBS MoneyWatch. 'There's a lot of relief and plenty of supply." Still, consumers should be vigilant about tracking egg prices and finding ways to save, especially at a time when grocery prices are high across the board. One good way to save money on eggs is to buy them in bulk. For example, if you have a Costco membership, use it. You may also be able to save money by purchasing eggs directly from farms, as opposed to buying them at your local supermarket. Local farmers markets could also be an option. It's also a good idea to review the supermarket circular (which you can typically get online) for every supermarket in your neighborhood before going egg shopping. This should tell you where you can get the lowest price. Apps like Flipp and Instacart can also help you track egg prices across grocers to see where you can find the best deal. In the meantime, if the cost of eggs is beyond your budget, you may be able to cut back on buying them if you're willing to get creative in the kitchen. Applesauce, for example, can often be used in place of eggs when you're baking. And in some cases, mashed banana can serve as a binding agent if egg prices are too steep for your budget. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
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
12-04-2025
- Business
- Yahoo
Cal-Maine discloses DoJ egg prices probe
Cal-Maine Foods has disclosed it is part of the investigation by the US Department of Justice (DoJ) into the high egg prices seen in the US in recent months. The company, one of the largest suppliers of eggs in the US, has disclosed that in March, it 'received civil investigative demand" linked to what the company called "a widely publicised investigation by the Antitrust Division of the Department of Justice into the causes behind nationwide increases in egg prices'. Cal-Maine said it is 'cooperating with the investigation'. Just Food has approached the publicly listed group for further comment. Yesterday (10 April), the US Bureau of Labor Statistics reported a 5.9% month-on-month rise in egg prices in March. Over the past year, egg prices have surged by more than 60%, the data shows, amid an outbreak of highly pathogenic avian influenza, or HPAI. Cal-Maine made the disclosure about the DoJ probe alongside the publication of its third-quarter results for fiscal 2025. The figures for the period, which ended on 1 March, reported an average net price of $4.06 per dozen eggs versus $2.25 a year ago. In the earnings announcement, Sherman Miller, the president and CEO of Cal-Maine Foods, said: 'Dynamic market conditions and HPAI-related supply shortages persisted this quarter.' Net sales for the quarter rose almost 100% year-on-year to $1.4bn, driven by higher pricing and increased volumes. Operating income climbed 290% to $635m. Net income stood at $508.5m, compared to $146.7m in the same period of fiscal 2024. Alongside the earnings announcement, Cal-Maine said it had agreed to acquire Echo Lake Foods, a manufacturer of breakfast foods, for approximately $258m. Founded in 1941 and owned by the Meinerz family since 1981, Echo Lake produces and distributes a range of ready-to-eat egg-based products and breakfast items. Cal-Maine reported that Echo Lake generated around $240m in revenue in 2024, with a compound annual growth rate of about 10% over the past five years. "Cal-Maine discloses DoJ egg prices probe " 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
