Galaxy Nutritional Foods could be taken wholly private after its controlling shareholder agreed to join forces with a private equity firm to buy the remaining shares in the US organic dairy group.

Galaxy Partners, which owns 51.1% of Galaxy Nutritional, and private equity group Mill Road, have agreed to contribute their combined 53% stake in the business to investment vehicle MW1.

MW1 plans to make a cash tender offer to buy the remaining shares in Galaxy Nutritional with a bid worth US$0.36 a share.

The offer will open on 13 February and is expected to last until 16 March, it was announced today (9 February).

There will be no financing contingencies related to the offer.

Upon the successful completion of the offer, Mill Road and Galaxy Partners will, through MW1, be joint owners of Galaxy Nutritional.

At present, Mill Road is the sole equity holder in MW1, but it is expected that Galaxy Partners will also become a shareholder in the investment vehicle before the offer for the remaining Galaxy Nutritional shares expires.

"As the majority shareholder of the company, we are excited to be able to provide shareholders liquidity for their shares at a great price," said Timothy Krieger, managing member of Galaxy Partners.

"The partnership between Galaxy Partners and Mill Road facilitates the offer, which we believe is a win-win for both the shareholders and the company. As a private company owned by Galaxy Partners and Mill Road, the company will have access to capital it has lacked in the past which has hindered its ability to grow."