Deal Struck Top Sell Demoulas Supermarkets; Arthur T. To Return Immediately
Aug 27, 2014 10:14PM, Published by Bill Gilman, Categories: Business
In a deal reached late Wednesday night, the company's Class A shareholders, led by Arthur S. Demoulas, signed an agreement to sell 50.5 percent of Demoulas Supermarkets to the Class B shareholders, led by Arthur T. Demoulas and his siblings for slightly more than $1.5B.
The deal was announced in the following joint statement, released by Arthur T.'s spokesperson, Justine Griffin:
The deal was consummated at a Board of Directors meeting tonight (Aug. 27) in Boston.
Market Basket and its shareholders are pleased to announce today that the Market Basket shareholders have entered into a binding agreement pursuant to which the Class B shareholders will acquire the 50.5% ownership interest of Market Basket currently owned by the Class A shareholders.
Effective immediately, Arthur T. Demoulas is returning to Market Basket with day-to-day operational authority of the company. He and his management team will return to Market Basket during the interim period while the transaction to purchase the Company is completed. The current Co-CEO's will remain in place pending the closing, which is expected to occur in the next several months.
All Associates are welcome back to work with the former management team to restore the Company back to normal operations.
The shareholders and the Company would like to thank Market Basket customers and partners for their strong support through the years. Our shared goal is to return Market Basket to the supermarket that its customers have come to rely on for service, quality and best prices. We look forward to seeing you at your local Market Basket.
Of the $1.5B purchase price, $1.5B. $500M is reported to be coming from a venture capital firm.
In addition to ending a five-week old strike by some 200 Demoulas/Market Basket employees, the sale agreement is also expected to end the consumer boycott that has crippled the 71-store chain and cost the company upwards of $40M a week.
The Market Basket employee Facebook page, "Dave Market Basket," posted the following reaction to the news of the sale agreement:
We Are Market Basket and WE ARE BACK!!
Tonight, the resolution we all have been fighting for for so long has come to be. The Board of Directors has approved the sale of the company to the family of Arthur T. Demoulas and we are back in the building starting tomorrow! The entire management team including those fired and those who resigned will be back as well to start the process of rebuilding. Most importantly, ATD is back!!
Details are emerging as we write this but we wanted to let the world know that we have emerged from this crisis victorious! The STAKEHOLDERS have helped to Save Market Basket and in doing so, we have made history. Associates, vendors and most importantly, CUSTOMERS carried the banner for a company that is so much more than simply a company, but is rather an integral piece of every community it serves.
Tonight we raise a glass to Artie T and each other as we have achieved the most improbable of upsets. Tomorrow we go to work and never, in the history of people going to work, will so many people be so happy to punch the clock.
To our customers...words will never be able to express our appreciation of what you have accomplished. You are the lifeblood of who we are and we are eternally thankful to you. Please understand that we will be working around the clock to get every department in every store back up to speed and once we do, we will be better than ever!
WE ARE MARKET BASKET and WE ARE BACK!
We will have more information on this story as it becomes available.
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