Jacmar Plans on Controlling Chicago Pizza
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Jacmar Cos., a private firm that operates wholesale specialty food-service distribution, is moving to acquire a majority stake in Chicago Pizza & Brewery Inc., the Huntington Beach operator of casual dining restaurants said Thursday.
Jacmar affiliate BJ Chicago is planning to purchase 28% of Chicago Pizza’s shares outstanding, which would give Jacmar a majority stake, Chicago Pizza said.
BJ Chicago agreed to purchase 2.21 million Chicago Pizza common shares outstanding from ASSI Inc. and Louis Habash for $4 a share, a 42% premium from the Wednesday closing price of $2.81.
The stock Thursday moved up 22 cents a share, or 8%, to $3.03 in Nasdaq trading.
Chicago Pizza’s co-chief executives, Paul Motenko and Jerry Hennessy, agreed to sell 661,358 shares, or 8% of the company’s total shares outstanding, which would give Jacmar a 51% stake.
Jacmar, the company’s largest restaurant supplier, recently acquired more than 15% of Chicago’s common shares.
Motenko and Hennessy have signed new agreements extending their employment contracts to Dec. 31, 2006, and with base salaries of $225,000, up from $150,000.
Two Chicago Pizza directors nominated by ASSI--Mark James and Allyn Burroughs--have resigned, effective Thursday.
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