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Cal-Maine Foods is accelerating its diversification strategy with the acquisition of key assets from the Van’s Foods business of Sara Lee Frozen Bakery, strengthening the company’s position in the growing better-for-you frozen breakfast category.

The deal, announced 12 May, gives the nation’s largest egg producer ownership of the Van’s brand, a leading player in gluten-free waffles and frozen breakfast products.

Financial terms of the transaction were not disclosed.

The acquisition marks another step in Cal-Maine’s expansion beyond shell eggs and into value-added prepared foods, as consumer demand continues to shift toward convenient, protein-forward and health-conscious meal options.

Van’s has built a strong presence in the frozen breakfast aisle with a portfolio that includes gluten-free, whole-grain and protein-enhanced waffles and pancakes. The brand has developed a loyal following among consumers seeking clean-label and allergy-conscious products.

Sherman Miller, president and chief executive officer of Cal-Maine Foods, said: “Van’s is an exciting and highly complementary addition to our portfolio. We believe this acquisition will further our diversification strategy by expanding our reach in prepared foods consumer-facing retail.”

According to Cal-Maine, the addition of Van’s is expected to increase the company’s prepared foods annual sales by approximately 10% and prepared foods volume by roughly 6% on a pro forma basis.

The company said the acquisition also creates opportunities to expand distribution, enhance logistics efficiencies and drive product innovation across retail, e-commerce and direct-to-consumer channels. Executives pointed to potential synergies in research and development, cross-selling opportunities and expanded meal-solution offerings tied to high-protein and convenience-oriented eating occasions.

Cal-Maine indicated it plans to maintain the Van’s brand identity while leveraging its operational scale and prepared foods platform to support future growth. The company also signalled interest in expanding the brand into new formats, dayparts and snacking occasions.

“We have tremendous respect for the Van’s brand and the relationships it has established with its customers and consumers,” Miller said. “Our goal is to honour that legacy while bringing additional capabilities and resources to help the brand capture incremental share.”

For Sara Lee Frozen Bakery, the divestiture reflects a strategic move to focus investment on its core bakery portfolio, which includes brands such as Sara Lee, Chef Pierre and Bistro Collection.

Peter Laport, chief executive officer of Sara Lee Frozen Bakery, said: "Making disciplined decisions about where we compete is part of how we build a better, more resilient business."

The transaction further positions Cal-Maine Foods as a broader food solutions provider with growing exposure to prepared and convenience foods, complementing its traditional egg business. The company’s prepared foods portfolio already includes egg patties, omelettes, scrambled egg products, wraps, pancakes and waffles.