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Goldman Sachs PE could sell Michael Foods to Tyson for up to $2.5bn

17 Jan 2014

chickens_sqGoldman Sachs’ private equity arm is reportedly looking to sell egg and dairy products business Michael Foods for up to $2.5bn.

Chicken processing giant Tyson foods is said to be exploring a bid according to Reuters, which cited three people familiar with the matter.

It said Michael Foods was in the early stages of finding a buyer, adding that Tyson could decide not to move forwards with an offer.

The company has hired Goldman’s investment banking unit and Bank of America Merrill Lynch to advise on the potential sale.

Michael Foods was on track to hit an EBITDA of $250m for 2013, and was hoping to fetch between 9 and ten times that amount, Reuters added.

Goldman picked up an interest in Michael Foods from Thomas H Lee Partners in May 2010, in a deal which valued the business at about $1.7bn.

THL kept hold of about 20 per cent of the business following the deal.

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