Last updated on April 18th, 2014 at 01:18 pm
Post Holdings plans to acquire MFI Holding Corp. (Michael Foods) from affiliates of GS Capital Partners, affiliates of Thomas H. Lee Partners and other owners, for $2.45 billion.
The Michael Foods acquisition will be Post’s largest transaction to date. The deal fits with Post’s focus on diversifying its business to capitalize on consumer shifts toward more consumption of protein and away-from-home breakfast occasions.
Michael Foods’ business is value-added egg products, refrigerated potato products and cheese and other dairy case products under brands such as Papetti’s, All Whites, Better ‘n Eggs, Easy Eggs, Simply Potatoes and Crystal Farms. Its products are available to the foodservice, retail and food ingredient channels.
Michael Foods will continue to be managed by its existing executive team.
Jim Dwyer, CEO of Michael Foods, said, “The entire Michael Foods team is excited to join Post Holdings. We believe our business will benefit from Post’s portfolio management approach of effectively and efficiently investing in profitable growth and margin expansion. I’m delighted to be joining the Post team.”
Added Bill Stiritz, Post chairman and CEO, “This acquisition is exactly what we look for in an investment. 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.”
The transaction is expected to be completed in the second calendar quarter of 2014, Post’s fiscal third quarter, subject to closing conditions.
