The Boston Globe has uncovered some of the details behind Arthur T. Demoulas’s final offer to buy Market Basket, which is expected to be discussed by the company’s board of directors soon and could bring an end to the high-profile supermarket fight that has engulfed much of Eastern Massachusetts and New Hampshire this summer.
According to the Globe, the bid is for $1.5 billion, with more than $500 million of that figure coming in the form of financing from an unnamed private equity firm. Previous discussions had centered on Arthur T.’s rivals, Arthur S. Demoulas and his family, providing a financing plan. Neither side had seemed happy with the other’s proposed financing terms.
Arthur T. and family own 49.5 percent of Market Basket and are seeking to buy out the remaining 50.5 percent from Arthur S. and his side. The bid for $1.5 billion would put the full valuation at around $3 billion. Experts have suggested the chain was worth between $3 billion and $4 billion prior to this summer’s worker and customer action that has slowed business almost to a halt.
Market Basket’s business model, in part, hinges on its lack of debt. Some have speculated that Arthur T. going into debt to finance a purchase could hurt the model. The Globe article explores some of the ways, however, the company could cut back financially without boosting its low prices or cutting into its lauded employee benefits and compensation.