Tyson Foods reportedly made a bid to buy Michael Foods, a food and egg processor based in Minnetonka, Minn. Michael Foods is owned by GS Capital Partners, a private equity affiliate of the Goldman Sachs Group.
Michael Foods in December 2013 asked Goldman Sachs' banking unit and Bank of America Merrill Lynch to help prepare for an auction of Michael Foods, seeking a price of more than $2 billion. Bids to purchase Michael Foods were due on February 14, and two sources familiar to the matter told Bloomberg News Tyson bid to acquire Michael Foods. Several other private equity firms were also considering bids, the sources said.
Tyson Foods has a practice to not comment on acquisition rumors, but during a November 18 quarterly conference call with shareholders, Tyson Foods CEO Donnie Smith said the company is considering options to further grow its business through acquisitions. Within the past 12 months, Tyson Foods has acquired Bosco's Pizza, Circle Foods and Don Julio Foods.
Michael Foods' egg product brands include All Whites, Better'n Eggs, Papetti's and Abbotsford Farms.
GS Captial Partners purchased Michael Foods in 2013 for $1.7 billion from Thomas H. Lee Partners. Michael Foods' operation includes 11.3 million laying hens and has an annual revenue of $1.7 billion.