Post Holdings Acquires Michael Foods
Michael Foods, Inc., Minnetonka, Minn., announced that Post Holdings, Inc., St. Louis, intends to acquire the company and its related entities for $2.45 billion. The acquisition is expected to be completed in the second quarter of 2014, subject to customary closing conditions.
Michael Foods is a leading packaged goods company providing value-added food products and service solutions to customers in the foodservice, retail and food ingredient channels. It holds leading market positions in each of its three segments and produces a broad range of value-added egg products, potato products and cheese and dairy-case foods. Michael Foods' brands include Papetti's, Crystal Farms, AllWhites, Simply Potatoes, Abbotsford Farms and Eggland's Best (under license). Michael Foods is currently owned by an investor group that includes affiliates of GS Capital Partners, Thomas H. Lee Partners and other investors.
"This is an exciting time for the entire Michael Foods team and clearly demonstrates the strength of our brands, the value of our deep customer relationships and the dedication of our employees," says Jim Dwyer, chairman and CEO of Michael Foods. "We believe our business will benefit from Post's portfolio management approach and from our continued focus on the breakfast daypart, expanding egg consumption to all dayparts and delivering convenient meal and snack choices to consumers."
Michael Foods will continue to operate independently under the leadership of Dwyer and the company's current management team.
"This acquisition is exactly what we look for in an investment,” says Bill Stiritz, chairman and CEO of Post. “We are extremely impressed with the job Jim and his team have done, and we look forward to continuing to build this substantial business with them."