Employees of Michael Foods received some good news on Thursday, as news broke that the company had been sold to Post, in a $2.45 billion deal.
According to the Minneapolis/St. Paul Business Journal, the company's CEO Jim Dwyer said the sale will not bring cuts to Michael's 1,300-person workforce in Minnesota.
In fact, according to the article, Dwyer said the ownership change "will be invisible" to consumers.
Michael Foods is Minnesota's 14th-largest privately held company. It had $1.95 billion in revenue in 2013 and has 3,600 employees.
The sale ends a long period of private equity ownership for Michael Foods. According to the New York Times, the company was purchased by Boston-based private equity firm Thomas H. Lee Partners in 2003. Lee then sold a majority stake in 2010 to the equity arm of Goldman Sachs for $1.7 billion.
The Business Journal says those firms funded Michael Foods' capital investments and acquisitions to grow revenue, profits and market share.
Michael Foods brands include Simply Potatoes, All Whites and Crystal Farms. The purchase allows Post, which is better known for cereals such as Raisin Bran and Honey Bunches of Oats, to expand into egg whites and potatoes.
Post has been focusing on diversifying its business to capitalize on shifts in consumer behavior toward protein and away-from-home breakfast items.
“We believe our business will benefit from Post’s portfolio management approach of effectively and efficiently investing in profitable growth and margin expansion,” Dwyer said in a statement.
The deal is Post's largest transaction to date.