Post Holdings Inc., a consumer packaged goods holding company, has agreed to acquire MFI Holding Corp. (“Michael Foods”) from affiliates of GS Capital Partners, affiliates of Thomas H. Lee Partners, and other owners.
Michael Foods is a producer of value-added food products and service solutions to customers across the foodservice, retail, and food ingredient channels. It holds leading market positions in categories including value-added egg products, refrigerated potato products, and cheese and other dairy case products. Michael Foods has brands such as Papetti’s, All Whites, Better ‘n Eggs, Easy Eggs, Simply Potatoes, and Crystal Farms.
The Michael Foods acquisition will be Post’s largest transaction to date. It continues Post’s strategy of investing in large secular themes in the food industry. Post remains focused on diversifying its business to capitalize on shifts in consumer behavior towards increased consumption of protein and away-from-home breakfast occasions.
Michael Foods will continue to be managed by its existing executive team. “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,” said Jim Dwyer, Michael Foods’ CEO.
The transaction is expected to be completed in the second calendar quarter of 2014, Post’s fiscal third quarter, subject to various closing conditions including the expiration of waiting periods required under antitrust laws.