INDIANAPOLIS -- Marsh Supermarkets Inc. said Tuesday an investor group offered to buy the company for about $107.8 million in cash, nearly 23% higher than an existing offer.
The supermarket chain said it received an unsolicited letter dated May 22 from Drawbridge Special Opportunities Advisors LLC and Cardinal Paragon Inc. offering to buy the company for $13.625 per share in cash, subject to completion of due diligence.
The terms are otherwise substantially the same as those of MSH Supermarkets Holding Corp., an affiliate of Sun [image-nocss] Capital Partners Inc., which agreed to buy the company for $11.125 per share in cash earlier this month.
The company's board is recommending the MHS offer and is not changing its recommendation at this time, said the Associated Press.
According to Marsh, MSH sent the company a letter dated May 26, indicating it would be willing to break its merger agreement in exchange for various conditions including reimbursement for transaction expenses, waiver of a standstill agreement between all parties and other conditions. Marsh said it has rejected these conditions in view of the existing protection afforded MSH under the merger agreement, including a $10 million breakup fee.
Indianapolis-based Marsh operates 69 Marsh supermarkets, 38 LoBill Foods stores, eight O'Malia Food Markets, 154 Village Pantry convenience stores and two Arthur's Fresh Market stores in Indiana, Illinois and western Ohio. It 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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