Tyson (TSL) Said to Place Bid for Prepared Foods Giant Michael Foods

February 18, 2014 9:50 AM EST
Tyson Foods (NYSE: TSN) could be looking to bolster its distribution and processing with the acquisition of a key player in the segment.

Bloomberg said Tuesday that Tyson has put in a bid to acquire Goldman Sachs-controller Michael Foods Group. The business might be worth up to $2 billion, according to some sources.

Bids for Michael Foods were due at the end of last week and several private-equity firms was also said to join in on the bidding.

Tyson has been looking to expand its prepared-foods line, targeting sales growth of 6 to 8 percent for its value-added line. The unit competes with Hormel Goods (NYSE: HRL) and Hillshire Brands (NYSE: HSH).

Products from Michael Foods include Simply Potatoes, Papetti’s Easy Eggs and Crystal Farms cheese.

Shares of Tyson are up about 2 percent.

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