FREEHOLD, N.J. -- Foodarama Supermarkets here said the family of its chairman, Joseph Saker, and chief executive officer, Richard Saker, have made an offer to take the company private.
The two executives and six other members of their family are offering $52 per share for the ShopRite operator, which has 26 supermarkets in New Jersey and is a member of the Wakefern cooperative. The proposal values the company at about $51.4 million. The Sakers already control about 51% of the company's 988,000 shares outstanding.
The Sakers could not be reached for further comment, and a spokesman for the company declined to comment.
One of the company's largest shareholders, Arthur N. Abbey, founding partner of law firm Abbey Gardy, New York, said in a filing with the Securities and Exchange Commission that he has agreed to support the $52-per-share offer to take the company private. He owns 118,400 shares, or about 12% of the company's stock.
In addition to Richard and Joseph Saker, who control about 19.4% and 22.3% of the company's shares, respectively, other relatives included in the buyout offer include Joseph J. Saker Jr., senior vice president, marketing and advertising, and secretary, Foodarama; Thomas A. Saker, vice president, store operations, Foodarama; Gloria Saker; Nadine Saker-Mockler, president, Flexible Resource, a staffing company based in Stamford, Conn.; Denise Saker Marder, owner, Rosetta Stone Gallery, a clothing boutique in Los Angeles; and Richard James Saker, a Foodarama store manager.
The Sakers are forming a company called Saker Holding Corp. to make the acquisition. The company said it has a commitment for financing the transaction from GMAC Commercial Finance.
The stock had been trading at about $37 per share before the offer, but has since soared to approach the offering price. In addition to the 26 ShopRite stores, the company also owns two liquor stores and a garden center, all under the ShopRite banner. The company, which has not yet reported results for the fiscal year ended in October, posted net income of $860,000 on revenues of $914.1 million through the first three quarters. In fiscal 2004, Foodarama had net income of $1.8 million on sales of $1.18 billion.