Commercial Real Estate
Bellingham’s Haggen sells share to Private Investment Firm
By Seattle Business Magazine February 22, 2011
A majority share of Bellingham-based grocer Haggen Inc. has been sold to The Comvest Group, a private investment firm headquartered in West Palm Beach, Florida.
This deal marks the end of Haggen Inc.s long history as a family-owned company, although a significant minority share of Haggen Inc. will be retained within the Haggen family and the company will remain an independent chain with headquarters in Bellingham.
Some equity investors predict there could be a significant rise in such equity sales of family-owned companies as executives of family companies try to pull cash out of their investments either to diversify their holdings or help with succession planning.
The Comvest Groups investment in Haggen will maximize our potential and allow us to strengthen our market share in the highly competitive grocery industry, said Don Haggen, one of two brothers who are selling ownership stakes in the company. We are looking forward to serving our customers and remaining closely connected to our community for another 78 years.
Founded in 1933, Haggen Inc. has grown to be Washingtons sixth-largest private company and operates 30 supermarkets in Washington and Oregon under the Haggen Food & Pharmacy and Top Food & Drug names.
In addition to the sale, CEO and President Jim Donald will be stepping down after leading the company since October 2009. He will stay on as an advisor.
Clarence J. Gabriel was named as Donalds replacement. Gabriel offers over 25 years of senior leadership in consumer retail, supply chain management and manufacturing sectors. Previous senior positions include Albertsons and Pepsi-Cola North America.
Among other grocers, Haggen Inc. was hit hard during the recession, with a drop in revenues from $844 million in 2008 to $740 million in 2009, as well as employee count falling from 3,800 to 3,200. The company also recently closed three stores.