JACKSON: Cal-Maine Foods, a leading U.S. egg producer, announced it has reached a deal to acquire Echo Lake Foods, a Wisconsin-based breakfast foods manufacturer, for approximately $258 million. The acquisition will be funded using Cal-Maine’s existing cash reserves.
In a statement released alongside its third-quarter earnings, Cal-Maine said it had signed a “definitive agreement” to purchase the company. Founded in 1941 and owned by the Meinerz family since 1981, Echo Lake Foods produces and distributes breakfast items such as waffles, pancakes, diced eggs, and frozen omelets.
Cal-Maine said Echo Lake Foods reported $240 million in revenue for 2024, with a compound annual growth rate of 10% over the past five years. The acquisition, expected to close by the end of fiscal 2025, has been approved by the boards of both companies.
“This transaction represents an exciting growth opportunity and an important inflection point for Cal-Maine Foods,” said Sherman Miller, president and CEO of Cal-Maine Foods. “The combined product lines and capabilities of the two companies are highly complementary, and we share a commitment to operational excellence and customer satisfaction.”
Following the completion of the deal, Echo Lake Foods will operate as a stand-alone entity under Cal-Maine’s integrated operations. Its CEO, Kathy Brodhagen, will join Cal-Maine’s senior leadership team as president of Echo Lake Foods.
Cal-Maine expects the acquisition to strengthen its position in the value-added food segment of the egg market. The deal is anticipated to enhance customer relationships across retail, quick-service restaurants, and foodservice channels while leveraging Cal-Maine’s sales and distribution networks. The company also expects to achieve synergies in egg procurement and operational efficiencies.
The move follows Cal-Maine’s July acquisition of assets from ISE America for $110 million. It was announced alongside third-quarter results showing a sharp increase in net sales, operating income, and gross profit.
For the thirteen weeks ending March 1, Cal-Maine reported net sales of $1.4 billion, a 50% increase from the previous year. Operating income jumped 290% to $635 million, while gross profit grew more than 200% to $716 million.
Earlier this year, Cal-Maine also finalized a governance agreement with Daughters’ LLC, a family-led entity holding voting shares, to convert its super-voting Class A shares into common stock. The agreement is expected to pave the way for a new governance structure and diversification of family holdings.