Cereal maker Post Holdings’ subsidiary Michael Foods has entered into an agreement to acquire National Pasteurized Eggs (NPE) for undisclosed sum.
NPE offers pasteurized shell eggs under the Davidson’s Safest Choice brand and various private label brands.
It supplies eggs to restaurants, hotels, healthcare institutions, schools and other foodservice outlets around the world, as well as to consumers through retailers across the US.
However, the final transaction is subject to regulatory approval and other conditions. It is expected to be completed in the fourth quarter of calendar 2016.
The combination of NPE’s capabilities with the resources of MFI is expected to increase manufacturing and supply capacity for pasteurized shell eggs.
The Safest Choice technology developed by NPE eliminates salmonella in eggs without changing the taste or appearance.
Michael Foods is a supplier of value-added eggs, as well as egg products, refrigerated potato products, cheese and other dairy-case products.
In March, Michael Foods said that it was re-launching its Papetti's pasteurized shell egg products in the foodservice marketplace.
In June 2014, Post Holdings completed the acquisition of Michael Foods and its related entities for $2.45bn.
It acquired ready-to-eat and natural cereals producer MOM Brands in a deal worth $1.15bn last year.
Post Holdings manufactures, markets, and sells refrigerated, active nutrition, and private label food products in the US and Canada.
The company operates through five segments: Post Foods, Michael Foods, Active Nutrition, Private Brands, and Attune Foods.
