WAYNE, N.J. -- Grand Union Co. here last week said it closed the sale of $40 million of Class A convertible preferred stock to an investment group of Trefoil Capital Investors II and GE Investment Private Placement Partners II.
h Trefoil is an affiliate) and a subsidiary of General Electric Pension Trust (of which GE Investment is an affiliate). Grand Union plans to make subsequent $20 million convertible preferred stock sales to the investment group Feb. 25, 1997; Aug. 25, 1997, and Feb. 25, 1998.
Proceeds will be used to fuel the 228-unit chain's $240 million, three-year capital spending plan, which includes 78 store projects. Those include 50 stores to be renovated under the chain's program that centers on expanding full-service fresh food and prepared meal departments, plus a total of 28 new, expanded and replacement units.
Also under the July 30 agreement, Grand Union last week said it has reorganized its board of directors.
Roger E. Stangeland remains chairman. Reflecting the new equity partners, the new board includes Clifford A. Miller, a senior consultant to Shamrock Holdings; Geoffrey T. Moore, a managing director of Shamrock Capital Advisors; James J. Costello, retired comptroller and chief accounting officer of General Electric Co., and J. Richard Stonesifer, retired senior vice president of General Electric Co. and chief executive officer of GE Appliances.
Continuing as board members are Joseph J. McCaig, Grand Union president and CEO; Daniel E. Josephs, former president and chief operating officer of Dominick's Finer Foods; William G. Kagler, former president of Kroger Co., and David Y. Ying, a managing director at Donaldson, Lufkin & Jenrette.