Michael Teel, president and CEO of West Sacramento-based Raley’s and grandson of founder Tom Raley, will become majority owner of the company under a transfer deal announced by his parents.
Jim and Joyce Raley Teel said they will transfer majority ownership to their son, and the Teels’ four daughters will continue to hold minority ownership.
In a letter sent this week to Raley’s employees, the Teels noted that “fewer than 12 percent of family businesses transition to a third generation. With Mike’s passion and vision, we have great faith he will guide and grow the business for future generations.”
In a statement, Mike Teel said “the Sacramento region (is) poised for growth and so are we. This is our home, and we’re here to stay.”
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Under the transfer arrangement, Raley’s said Mike Teel will own 92 percent of the company, with his sisters equally sharing the remaining 8 percent. Other details of the deal were not disclosed by the family-owned firm, but an April 10 report by Moody’s references a $200 million loan and that “the proceeds of the proposed new debt will be used to partially finance the acquisition of the majority of the company’s shares by Michael Teel.” The Moody’s report says part of the “remainder of the purchase price will be financed through subordinated seller notes of approximately $43 million.”
Tom Raley opened his first store in Placerville in 1935. Today, the company oversees more than 100 stores under the Raley’s, Bel Air and Nob Hill Foods banners.