Cal-Maine Foods acquires Van’s Foods assets to diversify prepared foods portfolio
The transaction is expected to lift annual prepared foods sales by approximately 10 per cent as Cal-Maine Foods seeks to broaden its business-to-consumer retail operations.
Cal-Maine Foods, Inc. announced on 12 May that it has acquired certain assets of the Van’s Foods business from Sara Lee Frozen Bakery, LLC. The move marks a strategic expansion for the largest egg producer in the United States, which is seeking to diversify its revenue streams beyond its core commodity operations.
Van’s Foods is recognised as a leading brand in gluten-free waffles and holds a prominent position within the frozen breakfast market. Sara Lee Frozen Bakery, a manufacturer of premium frozen baked goods, is a portfolio company of Kohlberg. The specific financial terms of the acquisition were not disclosed in the source material.
The acquisition is designed to support Cal-Maine Foods’ broader strategy to expand its prepared foods business-to-consumer retail operations. By integrating the Van’s brand, the company aims to increase its annual prepared foods sales by approximately 10 per cent and boost volume by around 6 per cent on a pro forma basis.
Van’s Foods operates as a category leader in the "better-for-you" frozen breakfast segment. The brand maintains distribution across grocery stores, e-commerce platforms, and direct-to-consumer channels, positioning Cal-Maine Foods to better address shifting consumer preferences for convenience and dietary-specific products.
Cal-Maine Foods, listed on the NASDAQ under the ticker CALM, currently boasts an annual dividend yield of 6.30 per cent. The company is frequently cited by analysts among high-dividend stocks, though the acquisition signals a pivot towards capturing growth in the prepared foods sector alongside its traditional egg production business.
