Minn.-based Michael Foods sold for $1.7B

The owner of Minnetonka-based Michael Foods is selling the supplier of refrigerated foods to an investment fund run by Goldman Sachs for about $1.7 billion.

Michael Foods employs about 1,000 people in Minnesota. The company says no layoffs are expected as a result of the transatcion.

The seller, investment group Thomas H. Lee, also known as THL Partners, will continue to own about 20 percent of the company after the deal closes.

Michael Foods makes egg products, refrigerated potato products, cheese and dairy items. The company reported 2009 sales of $1.54 billion, a 15 percent decline from 2008.

As the world's largest processor of eggs, according to its website, the company gets about two-thirds of sales from related products, such as AllWhites liquid egg whites. Crystal Farms cheese and Simply Potatoes are among its brands.

Thomas H. Lee agreed to buy Michael Foods for $1.05 billion in 2003 from a group of owners including private-equity firms Vestar Capital Partners and Goldner Hawn Johnson & Morrison Inc. Executives also held part of the food company, which they took private in April 2001 for about $800 million.

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