INDIANAPOLIS -- Marsh Supermarkets Inc. has announced the expected signing of a definitive merger agreement to be acquired by MSH Supermarkets Holding Corp., an affiliate of Sun Capital Partners Inc., in an all cash transaction for $11.125 per share. The transaction has no financing contingency.
Marsh's board approved the transaction upon the recommendation of the Special Committee of disinterested and independent directors. The transaction is expected to close in the third quarter of calendar 2006, subject to customary closing conditions, approval of [image-nocss] the company's shareholders and regulatory approvals.
The disposition of Marsh's 154 Village Pantry convenience stores is still uncertain.
When the letter of intent was announced in mid-April, supermarket analyst David Livingston of Pewaukee, Wis.-based DJL, speculated that Sun Capital likely would spin off the Village Pantry c-stores and then sell off the company's real estate. That has been the scenario in similar recent supermarket buyouts, he said.
A Village Pantry spokesperson told CSP Daily News at the time only that the Sun Capital deal is very positive for the organization overall, but we are waiting to see [what will happen].
Don E. Marsh, chairman of the board and CEO of Marsh Supermarkets, said, We have conducted a thorough process of analyzing strategic alternatives and are pleased to move forward with an affiliate of Sun Capital Partners. Sun Capital's financial resources and deep retail operating experience will give Marsh the support we need to compete, grow and further enhance our business in a changing market.
Gary M. Talarico, managing director of Sun Capital Partners, said, We see tremendous potential in this 75-year franchise and intend to build upon Marsh's significant market share in the communities in which it serves.
Sun Capital Partners, Boca Raton, Fla., is a private investment firm focused on leveraged buyouts, equity, debt and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 115 companies worldwide with combined sales in excess of $30 billion since Sun Capital's inception in 1995.
Indianapolis-based Marsh operates 69 Marsh supermarkets, 38 LoBill Foods stores, eight O'Malia Food Markets, 154 Village Pantry c-stores and two Arthur's Fresh Market stores in Indiana, Illinois and western Ohio. The company also operates Crystal Food Services, which provides upscale catering, cafeteria management, office coffee, coffee roasting, vending, and concessions, and restaurant management and Primo Banquet Catering and Conference Centers, Floral Fashions, McNamara Florist and EnfloraFlowers for Business.
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