David MacAnally/Eyewitness News
Fishers, April 20, 2006 - Locally-owned Marsh is being sold to an out-of-state firm which, up to this point, hasn't been involved in the grocery business.
Sun Capital's website shows its diversity with over 100 companies worldwide. They are involved in everything from men's clothing to furniture to video rentals to bagels.
Professor Matt Will of the University of Indianapolis says the Marsh companies are worth quite a bit: "It is probably going to be worth about 88 million dollars."
The sale price in cash comes to about $11 per share. Professor Will talked about the buyer. "Sun Partners specializes in early buyouts. They have a philosophy: you buy a company before they lose too much money through a financial distress situation."
Marsh was already losing money steadily. It's already cut management and closed losing stores in its Village Pantry chain. It has customer loyalty and a good name. Will believes Sun Capital considers Marsh a good investment.
"(They feel) the company probably just had some bad times, bad management and financial results and can be turned around quickly. It is kind of like stopping the injury before it bleeds too much," he said.
But Will warns Sun usually resells companies like Marsh after three or four years once they are making money again.
Eyewitness News wasn't able to speak to management Thursday, so it's unclear what it means for Marsh workers or stores.
Marsh has a long history in Indiana as the hometown grocer, but there is a great deal more to the company than retail grocery stores.
The 75-year-old company, seeking a buyer since November, is selling more than just its 70 Marsh supermarkets across Indiana and Ohio.
The company owns and operates 38 LoBill Food stores, 8 O'Malia Food Markets, approximately 160 Village Pantry convenience stores, and an Arthur's Fresh Market.
But stiff competition from larger competitors forced Chairman and CEO Don Marsh to announce last November that the financial pressure was too much. The company to hired an investment firm to consider its options, which included selling the company.
That led to a restructuring move in February. Its store closings cost about 100 employees their jobs. The workforce at its Fishers headquarters was cut by 25.
Those changes were meant to save $12 million a year.
Financial experts say it was all part of the company's goal to cut expenses even more to get an attractive buyer.
If Sun Capital's offer is accepted, they will also own McNamara and Floral Fashions, Crystal Catering, Primo Banquet Catering, the Café Group, Butterfield Custom Food, Southern Heritage Coffee and Capitol Vending.
