Thomas H Lee Partners, a Boston MA-based private equity firm, has submitted a cash tender offer and consenting solicitation to acquire privately held Michael Foods Inc, a processor and distributor of refrigerated grocery products.
Together with Gregg A Ostrander, chairman and chief executive officer, and senior management, the equity firm signed a definitive agreement October 13 to acquire privately held Michael Foods from an ownership group. This group includes majority shareholder Vestar Capital Partners, Goldner Hawn Johnson & Morrison, and the Michael family.
The transaction, expected to close by year-end, values Michael Foods at about $1.05 billion, subject to certain adjustments. The transaction is subject to usual conditions.
Based near Minneapolis MN, Michael Foods reported 2002 net sales of more than $1.1 billion. It employs more than 4,000 people at facilities in nine states and three Canadian provinces.
Ostrander and his senior management team will remain in their executive management positions and will continue to be significant shareholders in the business after the transaction.
