Cal-Maine Foods, Inc. (NASDAQ: CALM) announced that it has completed a strategic investment with Crepini LLC, establishing a new egg products and prepared foods joint venture. Crepini LLC, founded in 2007, has grown its brand throughout the United States and Mexico featuring egg wraps, protein pancakes, crepes, and wrap-ups, which are now sold online and in over 3,500 retail stores.
The new entity, located in Hopewell Junction, New York, will operate as Crepini Foods LLC (“Crepini”). Cal-Maine Foods will capitalize Crepini with approximately $6.75 million in cash to purchase additional equipment and other assets and fund working capital in exchange for a 51% interest in the new venture. Crepini LLC will contribute its existing assets and business in exchange for a 49% interest in the new venture.
Commenting on the announcement, Sherman Miller, president and chief executive officer of Cal-Maine Foods, Inc., stated, “We are pleased to announce our strategic investment in Crepini, which aligns with our growth strategy to enhance our product portfolio and focus on value-added products and other egg product opportunities. We have a unique opportunity to leverage the established Crepini brand of quality products and extend our market reach to major retailers across the country. This new venture will complement our other egg product offerings from our growing Meadowcreek operation, which offers hard-cooked eggs for institutional, food service and retail needs. As consumer demand for affordable protein options, including egg products, continues to grow, Cal-Maine Foods is well positioned to meet this demand. We have a proven ability to derive value from our other strategic investments and believe there are significant opportunities to use our scale and established customer relationships to further expand our egg products business. We look forward to working with the Crepini team as we extend our leadership role in supporting the nation’s food supply with a differentiated product mix.”
“The Crepini team is looking forward to expanding our brand and offerings. We are excited to join the Cal-Maine Foods family, whose leadership team shares our values and approach to excellence,” said Paula Rimer Shkolnik, chief executive officer of Crepini LLC. “This partnership will allow us to make our products available to more national and international customers and continue to provide innovations in the egg specialty products category.”
