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Thomas H. Lee sells Michael Foods to GS Capital for USD1.7bn

Affiliates of Thomas H. Lee Partners and certain current and former members of management have completed the sale of Michael Foods to affiliates of GS Capital Partners.

The transaction values Michael Foods at approximately USD1.7bn.

Michael Foods is a producer and distributor of food products to the foodservice, retail and food ingredient markets. Its principal products are specialty egg products, refrigerated potato products, cheese and other dairy-case products.

Thomas H. Lee, which acquired Michael Foods in 2003, will retain an ownership stake of approximately 20 per cent as part of the transaction.

"We look forward to working with Jim Dwyer, the entire management team and THL to further build the company’s strong product portfolio across all segments," says Oliver Thym, managing director at GS Capital Partners. "We are excited to continue the Company’s demonstrated track record of finding profitable growth opportunities."

James E. Dwyer, Jr., chief executive officer and president of Michael Foods, says: "The Michael Foods team is excited about our next stage of growth and is looking forward to a great partnership with GS Capital Partners and THL."

Michael Foods’ executive chairman of the board of directors, Gregg A. Ostrander, and its Vice Chairman, John D. Reedy, are retiring.

"Both Gregg and John have been great partners over the past seven years and proven leaders at Michael Foods for many years prior. Their contributions to the company’s success have been significant," says Anthony J. DiNovi, co-president of Thomas H. Lee Partners and director of Michael Foods. "They will be missed in retirement, but they have left their indelible mark on this strong, vibrant company and leave behind a superb management team. This legacy positions Michael Foods for continued success and is one of the reasons why we’re pleased to retain an ownership stake."

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