TEWKSBURY, MA— Ousted Market Basket CEO Arthur T. Demoulas addressed hundreds of employees of embattled New England grocery at its company headquarters here on Thursday just hours after he and his family agreed to a deal to buy out rival shareholders, including his cousin Arthur S. Demoulas.
The deal struck late Wednesday evening that had Arthur T. and his family buying shares of the company they had not already owned is valued at more than $1.5 billion, according to Boston.com. Market Basket employs approximately 25,000 workers and has a portfolio of 71 stores.
Arthur T.'s ouster six weeks ago sparked protests from employees who demanded his return as CEO and loss of company vendors. Addressing a cheering crowd, he said, “You have demonstrated to the world that it is a person's moral obligation and social responsibility to protect the culture which provides an honorable and a dignified place in which to work.”
He added, “As I stand before you, I am in awe of what you all accomplished, and the sterling example you have all set for so many people across the region and across the country.”
Massachusetts Gov. Deval Patrick and New Hampshire Gov. Maggie Hassan had urged the two warring shareholder factions to reach a deal throughout the month of August. Patrick and Massan released a statement praising the agreement.
“Market Basket is a major employer in Massachusetts and New Hampshire, and an important local resource for the communities the company serves. We are delighted that the parties have reached agreement on terms of sale and resolution of operating authority, so that employees can return to work and customers will once again be able to rely on these stores to meet their needs,” they stated.
A spokesman for Arthur T. Demoulas released a statement on Wednesday, which stated, “Market Basket and its shareholders are pleased to announce today that the Market Basket shareholders have entered into a binding agreement pursuant to which the Class B shareholders will acquire the 50.5% ownership interest of Market Basket currently owned by the Class A shareholders.'
The statement continued, “Effective immediately, Arthur T. Demoulas is returning to Market Basket with day-to-day operational authority of the company. He and his management team will return to Market Basket during the interim period while the transaction to purchase the Company is completed. The current Co-CEO's will remain in place pending the closing, which is expected to occur in the next several months.” See story at Boston.com.
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