Mars Super Markets, the East Baltimore, MD-based independent which was founded by the D’Anna family in 1943, will be closing its doors on July 31. Of the 13 stores that remain operational, Weis Markets will acquire five of the best locations – units in Arbutus, MD; Essex, MD; on Harford Road in the Carney section of Baltimore County; on Holabird Avenue and Wise Avenue in the Dundalk area of Baltimore County.
After a 60-day WARN notice (Workers Adjustment and Retraining Notification) expires, Weis is expected to take possession of those five units, close them for less than a week and re-open them as Weis Markets. While no price was given for the sale of those five units, sources tell us the deal was in the $25 million range.
The market exit by one of the Mid-Atlantic region’s best known family-owned supermarket groups was not totally surprising since the D’Anna family, working with Washington DC-based investment banking firm The Food Partners, issued a prospectus last fall in which they explored a sale of their operation.
We were told that Mars’ chairman and CEO Chris D’Anna met with store managers and other key personnel on May 24 to inform them of the difficult decision. Mars employs about 1,200 associates and, while some will end up on the Weis team, many more will become unemployed.
“We have strived to truly be a part of the communities we serve and are proud of our legacy for providing both quality and service. We are grateful for our loyal customers and for our associates who serve them,” said D’Anna. “As a family-owned business, we recognize Weis Markets as a company with a similar commitment to its communities, customers and associates. This was an extremely important consideration in our decision.”
“This is an important acquisition for us as we’ve been steadily expanding within Baltimore County in recent years,” said Jonathan Weis, Weis Markets’ chairman and chief executive. “We have great respect for Mars, the D’Anna family and their associates who have long-served the public as a locally-focused food retailer. These are successful, well-run stores and we look forward to interviewing the associates of these stores for employment with our company.”
Once the purchase is complete, Weis Markets will operate nine stores in Baltimore County, essentially doubling its footprint in the region.
This is the second time that Mars has explored selling its enterprise. In 2007, the retailer also issued a prospectus as it explored potential future options. At that time, the company operated 18 stores and a 300,000 square foot distribution center on Edison Highway in Baltimore. It is believed that Food Lion and Weis Markets both submitted bids in the low $50 million range which were not accepted. Sources at the time told us that they believed that Mars was looking for a deal in the $80 million range.
Many changes have occurred since then. In 2014, Mars closed its Edison Highway warehouse and named Bozzuto’s, Inc. as its primary grocery supplier. Nine years ago, Vito D’Anna presided over the regional supermarket operator, which at the time had estimated annual sales of $270 million. Vito has since left the company and the remaining family members at Mars include brothers Ted D’Anna and Chris D’Anna, who serves as chief executive. In 2007, it was also believed that possible estate planning issues played a role in Mars’ decision to explore a sale. The D’Anna brothers’ mother, Katherine, is said to maintain operating control of the independent retailer. Annual sales for its remaining 13 units are estimated at approximately $205 million.
The company was founded by Joseph D’Anna who opened the company’s first store on Old Eastern Avenue in Essex in 1943. The store was located at the center of an apartment and military housing community known as Mars Estates. Because of that location, Joe D’Anna adopted the Mars name. Just down the road, Glenn L. Martin had developed and was building an aircraft that could take off from and land in water, the Mars Flying Boat.
Two years later, D’Anna opened a second store in the 200 block of Eastern Avenue. In the same year, his two younger brothers returned from the war, first Carmen, who served in the Navy in the Pacific and then Angelo from the Army in Europe. Both brothers went to work with Joe and were made partners.
One year later, in 1946, the brothers opened a store in Dundalk, closing the two locations in Essex. Not long after the move, Joe D’Anna sold his interest in the business, leaving Carmen and Angelo each with a 50 percent share. Angelo served as president of Mars Super Markets for many years before passing away unexpectedly in 1995. That left Carmen in full control of the growing operation. Carmen D’Anna died in 2007 leaving control of the company to his widow Katherine and their children. Vito D’Anna, who had been with the organization for many years as a store manager, was promoted and his two younger brothers Chris and Ted joined the business.