Stater Bros. Team to Buy Rest of Firm : Retailing: Colton-based grocery firm will be controlled by its management group.

The top management at the Stater Bros. supermarket chain said Thursday that it has agreed to acquire the 50% stake in the chain that it does not already own for $104 million.

The management team, led by Stater Bros. Chairman Jack Brown, said it plans to acquire the stake held by Los Angeles-based Craig Corp. “At this time, Craig Corp. has decided that it wishes to begin reinvesting in other projects and Stater Bros. is willing and able to accommodate them,” Brown said. “We’re pleased because the company will be totally in the hands of the executive team. Management will be able to determine the future of the company.”

The partnership between Craig and the Stater Bros. management team was forged in 1986 when the chain’s managers sought a “white knight” financial supporter in a proxy fight for control of the Colton-based company. About 25% of the company was traded publicly at that time and the management team, the which owned 36% of the firm, wanted Craig to buy stock in an effort to get a combined 51% stake. They succeeded, and the partners bought out other equity holders and took the company private in 1988.

Brown said Stater, with 108 stores in Southern California, is not planning any major operational changes and will maintain its privately held status. He said the company would double its expansion rate to eight stores a year if the Southland economy improves.

The state’s weak economy has created financial problems for most major supermarket operators in Southern California. Brown said Stater Bros. has been profitable but would not disclose its earnings.

The boards of La Cadena Investments, an investment firm controlled by the Stater Bros. managers, and Craig are expected to approve the planned buyout. Upon final approval, Craig’s shares will be converted into non-voting stock, and La Cadena can acquire Craig’s stake under a 2-year timetable. Craig agreed to give La Cadena up to 12 years to purchase the stake in exchange for interest payments.

La Cadena agreed to purchase Craig’s stock for $60 million and will pay an additional $44 million for other assets, sources said.