Cal-Maine to acquire Echo Lake Foods in a US$258 million deal
Cal-Maine is diversifying its portfolio by purchasing ready-to-eat egg products maker Echo Lake Foods. The transaction is expected to close by end of fiscal 2025, pending regulatory approval.
USA – Cal-Maine Foods Inc. is acquiring Echo Lake Foods Inc. in a transaction valued at US$258 million, with the deal expected to be completed before the close of fiscal 2025.
The Mississippi-based egg producer announced the acquisition on April 8 alongside its financial results for the third quarter of fiscal year 2025, which ended on March 1.
Cal-Maine plans to fund the transaction entirely through its existing cash reserves and clarified that the purchase price does not include potential tax assets tied to the acquisition.
Echo Lake Foods, headquartered in Burlington, Wisconsin, manufactures and supplies a range of breakfast items such as waffles, pancakes, French toast, scrambled eggs, cooked omelets, egg patties, and diced eggs.
In the 2024 fiscal year, Echo Lake generated revenue of approximately US$240 million, with a five-year compound annual growth rate of around 10%, according to Cal-Maine.
Expanding into value-added egg products
Cal-Maine, the largest supplier of fresh shell eggs in the United States, said the acquisition allows it to grow its presence in the market for ready-to-eat and value-added egg products.
The company currently offers various egg types including conventional, organic, cage-free, free-range, pasture-raised, brown eggs, and nutritionally enhanced options.
It expects the integration of Echo Lake to create efficiencies in sourcing and operations while also broadening access to retail, foodservice, and quick-service restaurant clients.
Echo Lake will remain a standalone business within Cal-Maine’s structure and continue to operate its four production facilities located in Wisconsin, Indiana, and Kentucky.
Cal-Maine also indicated that Echo Lake would benefit from access to its nationwide distribution network and established supply chain systems.
The deal complements Cal-Maine’s existing ready-to-eat offerings, such as hard-boiled eggs and products from its MeadowCreek Foods division, as well as items developed through its joint venture with Crepini Foods LLC.
Once finalized, Echo Lake’s CEO Kathy Brodhagen will take on a new role as president of Echo Lake Foods under Cal-Maine’s executive team.
Brodhagen said the acquisition presents opportunities to expand market access and product reach while benefiting employees and customers alike.
Founded in 1941, Echo Lake has been under the ownership of the Meinerz family since 1981.
The boards of directors for both companies have already approved the agreement, which does not require shareholder consent.
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