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Marsh family hands keys to new owners(Indianapolis Star, The (KRT) Via Thomson Dialog NewsEdge) Sep. 23--The auditorium was packed. The audience sat silent. For one last time, Don Marsh, chairman and chief executive of Marsh Supermarkets, stood behind a lectern at the company headquarters, telling the audience about a homegrown company he helped lead for 47 years. "We are coming into a new era at this present time," he said, his voice often cracking with emotion. The Indianapolis company, founded by Marsh's grandfather in 1922, was changing hands after several tumultuous years of declining sales, store closings and shrinking market share. In recent months, it's also been plagued by lawsuits by shareholders and family members, and long-drawn-out negotiations leading up to a sale. The new owner, starting Wednesday, is Sun Capital Partners, a private equity firm based in Boca Raton, Fla. People who held nearly 79 percent of the outstanding shares voted Friday in favor of Marsh's $88 million buyout deal with Sun. Marsh shareholders will receive $11.125 in cash for each of their shares. Don Marsh's speech to family, employees and shareholders marked the end of an era and the beginning of a new chapter in the company's history. His speech steered away from the company's financial problems and focused on family memories and nostalgic high points of the chain's glory days. Marsh talked about the night Al Capone's gang held up his grandpa's store in North Salem, shooting him in the head. Wilmer Marsh survived the attack, but he later closed the store and moved his family back to their farm. Marsh told about when his father, Ermal, died in a plane crash in 1959, leaving him and his brother holding the reins of a growing business empire. "I was 21 years old," he said. Marsh also talked about the day seven months ago when he sacked his three sons, who were Marsh executives, under growing investor pressure to take steps to turn around the company's falling sales and stock price. "I hope it never happens to anyone else," he said. "It wasn't easy. It wasn't my decision." There were high moments, too. For instance, in the 1950s, Marsh became the largest producer of gallon-sized ice cream in the world; in 1974, it became the first grocery store in the world to use bar-code scanners. Marsh's sphere of influence wasn't restricted to Indiana. In 1993, the company opened stores in India and Germany as joint ventures. The Marsh International food distribution business has ties to countries such as Cuba, Libya, Venezuela and Morocco. Through the good and bad, his wife of 46 years, Marilyn, was his shadow, he said. "I would like to thank my wife," he said in the public gathering. "We came through a lot of hard times. You don't realize how many times this company could have gone under." He said he was sad to let go, but that selling the company was the best thing to do. Shareholders seemed to agree, although some had hoped for a better sale price. "Any shareholder would have liked to see a better return. But overall, it's the best thing for the company," shareholder and former employee Nick Hutson, Carmel, said of the buyout. The deal is pretty good for the Marsh family. Don Marsh and company President William "Bill" Marsh, his brother, stand to make a total of $10.6 million by selling their shares. It's unclear whether any family member will continue working for the company. In recent years, the Marshes have had up to nine family members on the payroll. Only four remain: Don, Bill and Bill's wife and son. In an interview after the meeting, Don Marsh said he will miss the day-to-day running of the company. "I can see playing golf occasionally or (attending) the cocktail circuit occasionally; you gotta exercise your mind and focus on something else besides retirement," he said. Former employee Loretta Ambrosetti, 71, who attended Marsh's speech, said the end of the Marsh family era is a personal loss for employees. "It's really very sad," said Ambrosetti, who started working for the company in high school in a warehouse in Yorktown, where she met her husband. She retired three years ago. "We feel this is our company. I grew up and raised my family here." On Friday, Don Marsh tried to reassure employees that Sun Capital would run the company well. "You are with a good company," he said. "You are going to be competitive because you are going to have the money to be competitive." Sun Capital has a reputation for investing in struggling companies and trying to turn them around. "I think they (the new owners) will take care of you, hopefully, the way we took care of you the last 75 years," Marsh said. He said he doesn't see himself being involved in the company, at least not in any significant role. "I am 68 years old, and it's about time," Marsh said. "It's time for other people to step in and do the job." By Madhusmita Bora and J.K. Wall HISTORY OF MARSH -- 1922: Wilmer Marsh opens a general merchandise store in North Salem. -- 1931: Ermal Marsh (Wilmer's son) opens his first store on West Jackson Street in Muncie. After surviving the Great Depression, it is expanded to become the first supermarket in Muncie and is renamed Marsh Foodliner. -- 1953: Marsh Supermarkets becomes a publicly held company with a chain of 16 stores. -- August 1959: Ermal Marsh, 49, dies in a plane crash en route to Chicago from Muncie. At an emergency board meeting, Estel Marsh, Ermal's brother, is elected president. Don E. Marsh, Ermal's 21-year-old son, is handed some of his father's duties. -- 1966: The first Village Pantry convenience store opens in Muncie. -- 1968: Don E. Marsh is named president of the company. -- June 1974: Marsh becomes the first grocery store in the world to use scanners. -- 1990: First LoBill store opens in Wabash. -- 2001: Marsh acquires O'Malia's Food Markets. -- 2002: David A. Marsh, Don's son, is named president of the company. -- November 2005: The company announces it is exploring a possible sale. -- Feb. 8, 2006: Marsh announces it has cut 25 jobs at its headquarters, including those of President David A. Marsh and three other top executives. William L. Marsh, Don's brother, is made interim president. -- April 20, 2006: Marsh announces it has agreed to be purchased by an affiliate of Florida-based Sun Capital Partners. -- May 30, 2006: Marsh makes public that a second bidder, a partnership between Drawbridge Special Opportunities Advisors and Cardinal Paragon, has made an offer to buy the company for $107.8 million -- nearly 23 percent higher than the existing bid by Sun Capital. -- Aug. 2, 2006: Hamilton Superior Court Judge William J. Hughes rules that because of its original sale agreement with Sun Capital, Marsh may not pursue a higher bid from another partnership. Sept. 22, 2006: Marsh shareholders vote to approve the company's acquisition by an affiliate of Sun Capital. Sources: Marsh Supermarkets, Star archives WHAT YOU HAD TO SAY "I come (to Marsh) because it's close to my house. New owners might bring in new employees. I like the people who work here now." Sean Johnson, 29, Indianapolis "No matter what, I think people will continue to shop at Marsh." Gib Wehid, 37, Indianapolis "The sale might be good for the grocery store because there will be new people at the helm with different opinions and a different outlook, which might help them compete with other grocery store chains." Amy Cooper, 32, Speedway "I've been shopping here for over 20 years. I don't really know what to expect out of the new owners. I hope they keep the same employees." Martha Lickliter, Indianapolis To see more of The Indianapolis Star, or to subscribe to the newspaper, go to http://www.IndyStar.com. Copyright (c) 2006, The Indianapolis Star Distributed by McClatchy-Tribune Business News. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |