Jun 30, 2010 10:28 AM

Michael Foods Inc announced that its parent, Michael Foods Group Inc (formerly M-Foods Holdings Inc) closed a previously announced transaction under which its owners, affiliates of Thomas H Lee Partners LP (THL), and certain current and former members of management sold Michael Foods to affiliates of GS Capital Partners. The transaction values Michael Foods at approximately $1.7 billion.

A multinational producer and distributor of food products to the foodservice, retail, and food ingredient markets, Michael Foods’ principal products are specialty egg products, refrigerated potato products, cheese and other dairy-case products. THL, which acquired Michael Foods in 2003, will retain an ownership stake of about 20% as part of the transaction.

Michael Foods also is announcing the retirement of its executive chairman of the board of directors, Gregg A Ostrander; and its vice-chairman, John D Reedy.

BofA Merrill Lynch served as financial advisor and Weil, Gotshal & Manges LLP as legal advisor to Michael Foods and THL in connection with the transaction. Goldman, Sachs & Co was financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP was legal advisor to GS Capital Partners. Affiliates of Bank of America; Goldman, Sachs & Co; and Barclays Capital provided commitments for debt financing for the transaction.