Post Holdings acquires Michael Foods

Post Holdings plans to acquire Michael Foods and its related entities for $2.45 billion. The acquisition is expected to be completed in the second quarter of 2014, subject to customary closing conditions.

Michael Foods is a leading packaged goods company providing value-added food products and service solutions to customers in the foodservice, retail and food ingredient channels. The company holds leading market positions in each of its three segments and produces a broad range of value-added egg products, potato products and cheese and dairy-case foods.

Michael Foods' brands include Papetti's, Crystal Farms, AllWhites, Simply Potatoes, Abbotsford Farms and Eggland's Best (under license). Michael Foods is currently owned by an investor group that includes affiliates of GS Capital Partners, affiliates of Thomas H. Lee Partners and other investors including current management.

"This is an exciting time for the entire Michael Foods team and clearly demonstrates the strength of our brands, the value of our deep customer relationships and the dedication of our employees," said Jim Dwyer, chairman and CEO of Michael Foods. "We believe our business will benefit from Post's portfolio management approach and from our continued focus on the breakfast daypart, expanding egg consumption to all dayparts, and delivering convenient meal and snack choices to consumers."

According to Post, Michael Foods will continue to operate independently under the leadership of Dwyer and the company's current management team.

"We are pleased to become part of the Post family, and we look forward to maintaining and growing our leadership position with their support," said Dwyer. "I want to thank GS Capital Partners and Thomas H. Lee Partners for their investment and confidence in our business over the past several years as we worked toward this day."

"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," added Bill Stiritz, Post's chairman and CEO.

Goldman Sachs and Bank of America Merrill Lynch are acting as financial advisers and Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal adviser to Michael Foods in connection with the transaction.


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