Tyson "tables bid" for Michael Foods

Tyson "tables bid" for Michael Foods

Tyson Foods has remained silent on reports it has tabled a formal offer for US group Michael Foods.

According to Bloomberg, Tyson hopes to win through in an auction process expected to raise in the region of US$2bn. A spokesperson for the US protein group declined to comment.

Michael Foods was acquired in 2010 by Goldman Sachs' investment arm GS Capital Partners for US$1.7bn. Rumours that Goldman Sachs was seeking to offload the business emerged at the end of last year. Speculation has focused on Tyson as a potential strategic buyer, while a number of private-equity firms are said to be weighing up offers.

Michael Foods manufactures products under the Papetti's, Crystal Farms, AllWhites and Simply Potatoes brands. The group generates annual sales of around $1.5bn.

Tyson Foods is expanding its stable of value-added brands. It has indicated it wants to increase exposure to prepared foods in order to offset some of the swings in commodity prices associated with the protein markets.

Last year, sales of prepared foods accounted for just 10% of group revenue. However, Tyson plans to grow value-added sales and the company has realigned its management structure to reflect this aim - separating its prepared foods and chicken operating units.

Last month, Tyson acquired frozen pizza firm Boscos Pizza Co and earlier this month the company launched a range of frozen breakfast sandwiches, Tyson Day Starts.