Cal-Maine Foods is moving further into branded consumer retail with the purchase of the Van's Foods frozen breakfast brand from Sara Lee Frozen Bakery, a portfolio company of Kohlberg & Company.

The transaction, structured as an asset purchase, adds the number-one U.S.

gluten-free waffle brand and gives the nation's largest egg producer a bigger platform in prepared foods sold directly to shoppers.

Van's range includes frozen waffles and pancakes in gluten-free, protein-enhanced, and whole-grain varieties aimed at clean-label, allergy-conscious consumers.

The brand holds the number-one position in U.S.

gluten-free waffle sales and competes in the better-for-you frozen breakfast category.

Cal-Maine expects the addition to lift its prepared foods annual revenue by roughly 10% and volume by about 6% on a pro forma basis.

The company plans to leverage its scale for cost efficiency and supply reliability, deploy its distribution network to widen Van's retail and direct-to-consumer reach, cross-sell to overlapping customers, and combine research and development efforts to support product innovation.

It also sees opportunity to steer the portfolio toward more protein-forward items as consumer demand for high-protein, better-for-you foods grows.

The divestiture lets Sara Lee Frozen Bakery concentrate on its core portfolio of frozen bakery and dessert products sold under brands such as Sara Lee, Chef Pierre, and Bistro Collection.

Post-close, Van's will continue under its existing brand identity, with Cal-Maine providing resources to scale operations and expand market access.

Kohlberg, a middle-market private equity firm managing approximately $17 billion, acquired Sara Lee Frozen Bakery in 2018.