April 16/New York/Press Release -- Post Holdings has reached a deal to buy Michael Foods, a food processing and distribution company.
The deal values Michael Foods at $2.45 billion. It would allow Post, known for brands like Raisin Bran and Honey Bunches of Oats, to expand into egg whites and potatoes. The Michael Foods acquisition will be Post’s largest transaction to date.
“We believe our business will benefit from Post’s portfolio management approach of effectively and efficiently investing in profitable growth and margin expansion,” Jim Dwyer, Michael Foods’ chief executive, said in a statement.
The sale would close a long chapter of private equity ownership for Michael Foods. The company was bought in 2003 by Thomas H. Lee Partners, the Boston-based private equity firm, which sold a majority stake in 2010 to the private equity arm of Goldman Sachs. It was valued at $1.7 billion in the 2010 transaction.
Michael Foods, whose brands include Simply Potatoes, All Whites and Crystal Farms, reported $1.9 billion of net sales for the year ended December 28, an increase of 5% from the year earlier.