Goldman Sachs To Buy Michael Foods (GS, FIS)

Private equity firm Thomas H. Lee Partners has agreed to sell Michaels Foods to Goldman Sachs GS. Goldman’s private equity arm is likely to pay $1.7 billion for the company. Thomas H. Lee had invested in the food supplier firm in 2003. THL will retain a 20% stake in the company. Reuters has reported that THL will make a return on Michael Foods of more than three times its original investment. The company had unsuccessfully tried to sell Michael Foods in 2007. Thomas H. Lee was also a part of a consortium bidding for Fidelity National Information Services Inc. FIS. However, the consortium could not agree upon the price and hence, the talks fell apart.