Michael Foods Inc announced that its parent, M-Foods Holdings Inc, has signed a definitive agreement under which its owners, affiliates of Thomas H Lee Partners LP and certain current and former members of management, will sell Michael Foods to affiliates of GS Capital Partners.
The transaction, expected to close in the next two months and subject to customary closing conditions, values Michael Foods at approximately $1.7 billion.
Michael Foods is a multinational producer and distributor of food products to the foodservice, retail, and food ingredient markets. Its principal products are specialty egg products, refrigerated potato products, cheese, and other dairy-case products. THL, which acquired Michael Foods in 2003, will retain an ownership stake of about 20% as part of the transaction.
BofA Merrill Lynch served as financial advisor and Weil, Gotshal & Manges acted as legal advisor to Michael Foods and THL in the transaction. Goldman, Sachs & Co was a financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP was legal advisor to GS Capital Partners.
Based in Minnetonka MN, Michael Foods produces egg products include Papetti’s, Abbotsford Farms cage-free and organic egg products, and All Whites and Better ‘n Eggs, both sold at retail. Michael Foods also owns the Simply Potatoes line of refrigerated potato products, as well as Crystal Farms branded cheese and refrigerated products.
