LANHAM, Md. (FNS) -- The founding family of Shoppers Food Warehouse here has accepted an offer to sell its half of the supermarket chain for $210 million to Dart Group, Landover, Md., which owns the other half.
Kenneth M. Herman, who founded the 34-unit chain, agreed to the buyout less than 48 hours after Dart initiated a change-of-ownership option included in the chain's stockholders' agreement. The deal is to close in 60 days.
Mark A. Flint, who joined Dart as chief financial officer earlier this year, will coordinate the Shoppers transition, Dart said in a press statement. Dart said Flint has extensive experience in supermarket acquisitions and operations.
Shoppers reported total sales of $836 million and net income of $18.9 million. Dart last week reported a $1.2 million loss for the quarter ended Oct. 31. Dart has said it would probably sell Shoppers if it gained a majority stake.
Observers have said Dart's motivation for selling Shoppers would be to generate enough capital to buy out Dart shares controlled by Dart chairman and chief executive officer Herbert Haft. Robert Herman, Shoppers' chief operating officer, did not return calls to SN this week.
