- Goldman Sachs Capital Partners, the current owner of Michael Foods, is working out a sale for close to $2.5 billion for the Minnetonka, Minnesota-based producer of specialty eggs, refrigerated potatoes, and dairy products.
- Michael Foods is evaluating binding bids from Tyson and Post that were submitted earlier this week and has yet to determine which party to sell to.
- A takeover of Michael Foods would be the largest deal in recent years for both Tyson and Post.
Goldman Sachs Capital Partners purchased Michael Foods from private equity firm Thomas H. Lee Partners LP in 2010 for around $1.7 billion. Thomas H. Lee retained an ownership stake of about 20%. The last major acquisition Tyson made was its 2001 purchase of IBP Inc for $3.2 billion, which was key in linking the Tyson name with the world's largest meat producer and processor. Post, on the other hand, has made a string of acquisitions, picking up five brands just in the last year alone. However, all those acquisitions were much smaller than Michael Foods. Whether Tyson or Post will be the new owner of Michael Foods will become clear in the next couple of weeks when the deal is expected to be settled.