American meat producer Tyson Foods is reportedly considering the acquisition of egg distributor Michael Foods Group, owned by a private equity unit of Goldman Sachs Group.
The deal, which is seen worth over $2bn, will help the two companies in enhancing chicken production. Furthermore, it would place Tyson into an adjacent category within poultry and protein, reported Reuters.
Michael Foods is a producer and distributor of specialty eggs, refrigerated potatoes, cheese and other dairy products. It was acquired by Goldman Sachs Capital Partners from Thomas H. Lee Partners in 2010 for about $1.7bn.
Tyson Foods, which has a market capital of about $12bn, has acquired IBP for $3.2bn in 2001 to transform it into the world's largest meat producer and processor.
Michael Foods posted EBITDA of $188m for the nine months ended 28 September 2013 compared to the same period in 2012.
