Food manufacturer TreeHouse Foods is weighing a bid for Michael Foods, joining a list of potential buyers that includes larger rival Tyson Foods, according to a Reuters report on Wednesday. Michael Foods, the egg and dairy products producer owned by Goldman Sachs Group's private equity unit, GS Capital Partners, is in the advanced stage of finding a buyer.
The deal could be between $2 billion and $2.5 billion. It is not clear how serious TreeHouse might be about acquiring Michael Foods, however, the company said in a press release earlier this year that it is looking at expanding.
Other parties in talks with Michael Foods include private equity firms Golden Gate Capital and Oaktree Capital Management. Second-round bids for Michael Foods are due in early April.
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.
