Results
Cal-Maine Foods Inc.
06/02/2025 | Press release | Distributed by Public on 06/02/2025 14:15
Material Event (Form 8-K)
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Contacts:
Sherman Miller, President and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS CLOSES ACQUISITION OF ECHO LAKE FOODS
RIDGELAND, Miss.(June 2, 2025)
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Cal-Maine Foods,Inc. (NASDAQ:CALM) ("Cal-MaineFoods" orthe
"Company"), today announced the closing of its acquisition of Echo Lake Foods.
The Company announcedin April thatit signed adefinitive agreement toacquire Echo LakeFoods in an
all-cash transactionfor approximately$258 million,which isexpected toprovide atax benefitof ~$28
million equatingtoan effectivepurchase priceof~$230million.EchoLake Foodsproduces,packages,
marketsanddistributesready-to-eateggproductsandbreakfastfoods,includingwaffles,pancakes,
scrambledeggs,frozencookedomelets,eggpatties,toastanddicedeggs.EchoLakeFoodshadannual
revenues of approximately $240 million in 2024 with a five-year CAGR of approximately10%.
Highlights of the Transaction:
Compelling Strategic Rationale
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Allows Cal-Maine Foods toenter the large, growingand highly stable value-addedfood portion of
the egg category
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Expands strategiccustomer relationshipswith retail,quick servicerestaurant andother foodservice
customers
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Leverages Cal-Maine Foods' extensive sales and supply chain distribution capabilities
Attractive Financial Returns
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Provides access to additional long-term growth opportunities while reducingearnings volatility
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Estimated potential $15million annual synergyopportunity driven byegg purchasing efficiencies
and SG&A savings
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Expected mid-single digit percentage accretion to EPS (including synergies)in FY2026.
Sherman Miller,president andchief executiveofficer of Cal-MaineFoods, stated,"The additionof Echo
Lake Foods advances our stated strategy to expand and diversifyour product portfolio and customer mix.
Echo Lake Foods isa leading innovator with along history of providing quality ready-to-eategg products
and breakfast foods toa blue-chip customer base. Thecombined product lines and capabilities ofthe two
companiesarehighlycomplementaryand,importantly,wesharesimilarvaluesofpursuingoperating
excellence and meeting the needs of our customers.
"The acquisitionof EchoLake Foodsmeets ourdisciplined setof investmentcriteria, includingrelevant
geographicmarkets,operatingsynergies,productmix,proximitytocustomersandexpectedfinancial
returns. The EchoLake Foods teamhas built aterrific business andwe look forwardto working together
on asuccessful integration,delivering ona uniqueopportunity forour customersand shareholders,and
welcomingKathyBrodhagen toourleadershipteamandEchoLakeemployeestotheCal-MaineFoods
family," added Miller.
GoldmanSachs&CoLLCisservingasCal-MaineFoods,Inc.'sexclusive financialadvisorwhileSidley
Austin LLP is serving as its lead legal advisor.
Cal-Maine Foods CompletesAcquisition of Echo Lake Foods
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June 2, 2025
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About Cal-Maine Foods
Cal-Maine Foods,Inc. isprimarily engagedin theproduction, packaging,marketing anddistribution of
freshshelleggs,includingconventional,cage-free,organic,brown,free-range,pasture-raisedand
nutritionallyenhancedeggs,aswellasavarietyofready-to-eateggproducts.TheCompany,whichis
headquartered in Ridgeland, Mississippi,is the largestproducer and distributor offresh shell eggsin the
nation and sells most of its shell eggs throughout the majority of the United States.
Forward Looking Statements
Cal-Maine Foods Inc. published this content on June 02, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on June 02, 2025 at 20:15 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]