Cal-Maine Foods, Inc. has entered into a definitive agreement to acquire Echo Lake Foods, Inc.

Cal-Maine signed a definitive agreement to acquire Echo Lake Foods for approximately $258 million, excluding expected tax assets resulting from the transaction, to be funded with available cash on hand.

Echo Lake Foods was founded in 1941 and acquired by the Meinerz family in 1981. Based in Burlington, Wis., The company 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. It had annual revenues of approximately $240 million in 2024 with a five-year CAGR of approximately 10%. The transaction has been approved by both companies’ boards of directors and is expected to close by the end of fiscal 2025 following completion of regulatory approvals and subject to customary closing conditions. The transaction is not subject to shareholder approval.

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 foodservice customers
• Leverages Cal-Maine Foods’ extensive sales and supply chain distribution capabilities
• Echo Lake Foods will operate as a stand-alone component of Cal-Maine Foods’ integrated operations with its four production facilities strategically located across the Midwest
• Kathy Brodhagen, current chief executive officer of Echo Lake Foods, to join Cal-Maine Foods’ senior management team as President of Echo Lake Foods

Commenting on the proposed transaction with Echo Lake Foods, Sherman Miller, president and chief executive officer of Cal-Maine Foods, stated, “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. 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. 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.

“The addition of Echo Lake Foods will supplement our other ready-to-eat egg product offerings, including hard-cooked eggs for retail, quick service restaurant and other foodservice needs from our expanded MeadowCreek Foods operation, and ready-to-eat egg products including egg wraps, protein pancakes, crepes, and wrap-ups from our joint venture with Crepini Foods LLC. Importantly, diversifying our product portfolio offers a strong, high-return potential that complements our existing organic growth opportunities. The Echo Lake Foods team has built a terrific business, and we look forward to working together on a successful integration and delivering on a unique opportunity for our customers and shareholders,” added Miller.

Brodhagen added, “We are excited to have the opportunity for Echo Lake Foods to join Cal-Maine Foods and continue to expand our market reach for quality ready-to-eat egg products and breakfast foods. This business combination will benefit everyone associated with Echo Lake Foods, especially our dedicated employees and valued customers. As the leading producer and distributor of fresh shell eggs in the nation, Cal-Maine Foods has an excellent reputation with a proven record of success. We are extremely proud to join their team, and we look forward to the significant growth opportunities ahead of us.”

Goldman Sachs & Co LLC is serving as Cal-Maine Foods, Inc.’s exclusive financial advisor while Sidley Austin LLP and Jones Walker LLP are serving as its legal advisors.

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