Skip to main content

Minnesota-based Michael Foods sold to Post, reports say

  • Author:
  • Updated:
    Original:

Michael Foods, the Minnetonka-based maker of Crystal Farms cheese and other processed food brands, is being acquired by cereal maker Post Holdings, the New York Times reports.

The Times, citing two sources with knowledge of the deal, said the sale could be announced as soon as Thursday. The deal values Michael Foods at $2.5 billion, one of the sources said.

Shares of Post were up about 7 percent on Wednesday after The Wall Street Journal earlier reported the pending deal.

Representatives of Post and Michael Foods did not respond to requests for comment from several media outlets.

The deal would allow St. Louis-based Post, which is best known for cereals like Raisin Bran and Honey Bunches of Oats, to expand its offerings to include more protein and dairy products.

If it's approved, the deal would nearly double the size of Post, whose market value is about $2 billion, the Wall Street Journal reports.

Michael Foods produces and distributes food products under a variety of brands, including Abbotsford Farms eggs, Simply Potatoes, Crystal Farms cheeses and liquid egg whites. The company reported $1.9 billion of net sales for the year ended Dec. 28, an increase of 5 percent from the year earlier.

Michael employs about 3,500 people, according to a profile in Business Week.

Michael Foods has been under private equity ownership for the past decade, according to the New York Times. It was bought in 2003 by Thomas H. Lee Partners, a Boston-based private equity firm. Lee sold a majority stake to the private equity arm of Goldman Sachs in 2010. It was valued at $1.7 billion in the 2010 transaction.

Next Up

Kwesi Adofo-Mensah

The biggest personnel decisions facing the new GM

Kwesi Adofo-Mensah has some tricky personnel decisions coming up in the near future

Kwesi Adofo-Mensah

What to know about new Vikings GM Kwesi Adofo-Mensah

The former Wall Street trader is an analytics guru who appreciates collaboration.

metro transit southwest light rail green line extension construction

Southwest LRT may cost $210M more, take 3 years longer to build

The Met Council is proposing a settlement with one of its contractors due to disputes over construction changes.

Rick Spielman

Spielman: 'That head coach has to have a relationship with that QB'

"I think the No. 1 thing you’re looking for is that head coach has to have a relationship with that quarterback."

Screen Shot 2022-01-26 at 6.36.25 AM

Gallery: France 44 to build two-story addition, rooftop patio

The Minneapolis liquor store and cheese shop is stepping up its events and class offerings.

2019_1229_Bears_Home_0831

Ryan Poles picking Chicago creates battle of the rebuilds with Vikings

Both of the Vikings' GM finalists land in the same division looking to return to relevancy.

David Ortiz

Twins congratulate David Ortiz on HOF induction, it ends badly

Twins fans haven't forgotten the biggest mistake in franchise history.

benton county snowmobile jan 2022 crop

Who left the burnt snowmobile on a frozen Minnesota lake?

There wasn't much left beyond the frame and a few other large, metal parts.

Related

Michael Foods recalls eggs sold in Minnesota, other states

Michael Foods, headquartered in Minnetonka, is recalling hard-cooked eggs sold in 10- and 25-pound pails for institutional use. The company says the product may be contaminated with Listeria, which can severe sickness or even death for those with weakened immune systems.