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INDIANAPOLIS-MSH Supermarkets Inc., an affiliate of Boca Raton, FL-based Sun Capital Partners Inc., has completed the acquisition of Marsh Supermarkets Inc. for approximately $325 million--$237 million more than the company's original offer.

The deal comes four months after two firms submitted a bid to acquire the chain for more than $2 per share above Sun Capital's initial offer of $88 million. Drawbridge Special Opportunities Advisors LLC and Cardinal Paragon offered just under $13.63 per share, or about $108 million, to buy the chain.

With Sun's latest bid sealing the deal, Frank Lazaran, a former senior executive with more than 30 years of regional supermarket experience, has been appointed president and CEO of Marsh as a result of Don Marsh's previously announced resignation. Lazaran's experience includes senior management positions with Winn-Dixie Stores Inc.; Randalls Food Markets Inc., a division of Safeway of Houston and which operates high-volume stores under the Tom Thumb banner in the Dallas/Fort Worth Metroplex area and as Randalls in the Houston and Austin markets; and Ralphs Grocery Co. in Compton, CA.

Marsh, outgoing chairman and CEO of Marsh Supermarkets Inc., says the transaction is a great opportunity for company shareholders and employees, as well as the future of the food retailer. Marsh operates 69 Marsh supermarkets, 38 LoBill Foods stores, eight O'Malia Food Markets, 154 Village Pantry convenience stores, and two Arthur's Fresh Market stores in Indiana, Illinois and Western Ohio.

Sun Capital has been a big acquirer of retail companies in recent years. In December it acquired discounter ShopKo and its 255 stores for just under $880 million. It and Lupert-Adler Partners are partial owners of the 250-store Mervyns chain, which they acquired in 2004 with Cerebus Capital Management and Klaff Partners. Besides Mervyns, Sun Capital has stakes in the 250-restaurant Bruegger's Bagels, as well as the 69-unit Rag Shops.

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