Cal-Maine Foods (CALM) M&A Presentation summary

Acquisition overview

• Announced all-cash acquisition of Echo Lake Foods for $258 million enterprise value, representing a 5.5x EV/Adj. EBITDA multiple, with closing anticipated by end of FY2025 pending regulatory approvals.

• Echo Lake Foods will operate as a stand-alone business, with its CEO joining as President of Echo Lake under the new ownership.

• The acquisition is expected to be at least mid-single digit accretive to earnings starting in FY2026 and deliver a return on equity above cost of capital.

• Transaction approved by both boards and not subject to shareholder approval.

Strategic rationale and synergies

• Enables entry into the value-added food segment, expanding customer relationships across retail, QSR, and foodservice channels.

• Leverages existing sales and supply chain capabilities, providing access to new growth opportunities and reducing earnings volatility.

• Expected significant synergies from egg purchasing and operational efficiencies.

• Echo Lake brings innovation in product variety, packaging, and manufacturing expertise.

Financial impact and diversification

• Echo Lake Foods generated $242 million in annual revenue with a 19% adjusted EBITDA margin in 2024.

• Five-year revenue and adjusted EBITDA CAGR of 9–10% for Echo Lake.

• Pro forma business mix will increase exposure to value-added egg products, enhancing revenue diversification and margin accretion.

• Combined entity maintains a strong balance sheet, supporting ongoing investments, dividends, and share repurchases.