Marsh Intends to Sell
By George Anderson
Marsh Supermarkets has signed a letter of intent to sell its business to an affiliate of Sun Capital Partners in a deal worth $88 million in cash.
“We are excited about this opportunity and look forward to moving quickly to conclude a definitive merger agreement with the company,” Gary Talarico, managing director of Sun Capital Partners, said in a released statement posted on the Marsh web site.
Marsh has agreed not to solicit any other bids for the chain prior to May 11. There was no announcement as to what would happen if that deadline were missed.
Marsh hired Merrill Lynch in November to help it explore strategic options for the chain. The company has cited competition with larger competitors, such as Wal-Mart Supercenters, for recent weak performance.
Mr. Talarico expressed confidence in Marsh’s ability to compete under Sun Capital’s ownership.
“We are enthusiastic about Marsh’s dominance in its core markets and look forward to working with the management team and employees of the Company to continue to deliver excellent value to customers and the communities that Marsh serves,” he said.
The proposed deal for Marsh continues the recent trend of investment groups making acquisitions in the grocery channel. In January, Reuters reports, Albertsons agreed to sell off its business to an investment group including Supervalu and CVS.
Other recent deals include Marks & Spencer selling Kings Super Markets to an investor group including Angelo, Gordon & Co., MTN Capital Partners LLC and Bruce Weitz. Foodarama Supermarkets Inc., which operates ShopRite stores New Jersey, agreed to be purchased by Saker Holdings Corp.
Analysts have also recently speculated that A&P may be considering a bid for Pathmark Stores.
Moderator’s Comment: What will a sale of Marsh to Sun Capital Partners mean for the grocery chain’s business? What
other grocery chains do you think are most likely to be “for sale” in the near future? –
George Anderson – Moderator
signs buyout pact with Sun Capital – Reuters
- Marsh Supermarkets, Inc. Signs Letter of Intent for Proposed Acquisition – Marsh