April 16 Michael Foods Group Inc is close to a deal to sell itself to Post Holdings Inc for $2.5 billion, according to a person familiar with the matter.
The cereal company is likely to beat out Tyson Foods Inc for Michael Foods, an eggs and dairy producer, the person said.
Reuters reported last week that Michael Foods was in advanced talks to sell itself to either Tyson or Post.
Minnetonka, Minnesota-based Michael Foods produces and distributes products including specialty eggs, refrigerated potatoes, cheese and other dairy products.
Goldman Sachs Capital Partners bought Michael Foods from private equity firm Thomas H. Lee Partners LP in 2010 for around $1.7 billion. Thomas H. Lee retained an ownership stake of about 20 percent as part of the transaction.
Representatives for Goldman Sachs, Post and Michael Foods could not be immediately reached for comment.
An acquisition of Michael Foods would be a big bite for Post, which has a market cap of around $2.1 billion.
Post has been pursuing deals aggressively in the last 12 months. The company has acquired peanut butter maker Golden Boy Foods Ltd, pasta company Dakota Growers Pasta Co, sports nutrition brand PowerBar, protein bar maker Dymatize Enterprises LLC, and protein company Premier Nutrition Corp. (Reporting by Olivia Oran; editing by Andrew Hay)