Post Holdings acquires Michael Foods for $2.45bn

US-based consumer packaged goods company Post Holdings has completed the acquisition of egg distributor MFI Holding (Michael Foods) from affiliates of private investors GS Capital Partners, Thomas H Lee Partners and others for $2.45bn.

The company also closed its senior notes offering and senior secured term loan facility simultaneously with the closing of the Michael Foods acquisition.

Michael Foods provides value-added food products and service solutions to customers in the foodservice, retail and food ingredient channels.

The firm, which is said to hold leading market positions in each of its three segments, produces value-added egg products, refrigerated potato products, and cheese and other dairy case products.

These products are produced under brands such as Papetti’s, All Whites, Better ‘n Eggs, Easy Eggs, Simply Potatoes and Crystal Farms.

Under the leadership of Jim Dwyer and the company’s current management team, Michael Foods will continue to operate independently, according to Post.

Post expects Michael Foods to generate adjusted EBITDA of up to $270m for 2014.

At the time of announcing the agreement, Michael Foods chairman and CEO Jim Dwyer said the acquisition demonstrates the strength of the firm’s brands, the value of its deep customer relationships and the dedication of its employees.

"We believe our business will benefit from Post’s portfolio management approach and from our continued focus on the breakfast daypart, expanding egg consumption to all dayparts, and delivering convenient meal and snack choices to consumers," Dwyer added.

Post chairman and CEO Bill Stiritz said, "This acquisition is exactly what we look for in an investment. We are extremely impressed with the job Jim and his team have done and we look forward to continuing to build this substantial business with them."

Post manufactures brand such as Honey Bunches of Oats, Pebbles, Great Grains, Grape-Nuts and Honeycomb.