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Saturday, Sep. 26, 1998
Domino's founder retires, sells most of firm
Monaghan, who owned more than 90% of pizza chain, plans to devote time to charity
By JUSTIN HYDE
Associated PressDETROIT -- Domino's Pizza founder Tom Monaghan said Friday he is retiring and selling practically the entire company to a Massachusetts investment firm so that he can devote his time to charity.
The purchase price for the nation's No. 2 pizza chain was not disclosed.
``At the age of 61, reflecting on my life and the goals I have yet to fulfill, I have decided to retire from active involvement in Domino's Pizza and devote more time to my charitable endeavors,'' Monaghan said in a statement.
Domino's is second only to Pizza Hut in the United States. It has about 6,100 stores, 4,400 of them in the United States.
Monaghan, who owned more than 90 percent of Domino's, is selling nearly his entire stake to Bain Capital Inc., which manages more than $4 billion. One of Bain's managing directors is Mitt Romney, the son of former Michigan Gov. George Romney.
Kyle Potvin, a spokeswoman for Bain Capital, said Bain will run the company, and Monaghan will not be involved in day-to-day operations. Monaghan will step down as chief executive but will remain on the board of directors, Domino's spokesman Tim McIntyre said.
``Tom was looking to retire, but he was looking for something very specific,'' McIntyre said. ``He wanted a high-quality financial investor who was interested in owning the company, not operating it. He felt very comfortable that Bain would come to know the business very well and leave management to the experts.''
The company was founded in 1960 when Monaghan and his brother James borrowed $900 to buy DomiNick's, a pizza store in Ypsilanti. James later traded his share of the business for a Volkswagen Beetle. Monaghan renamed the store Domino's Pizza in 1965, and opened the first franchise in 1967.
Monaghan has made several attempts to sell parts of the business over the years, and had asked $1 billion for it in the early 1990s.
In 1989 he took a hiatus from the business for 2 and a half years to devote himself to Roman Catholic philanthropy. A devoted Catholic, he supervised the construction of a cathedral in Nicaragua; built a mission in Honduras; and founded a group of 450 Catholic chief executives who travel to places of Catholic interest.
During his time off, he sold most of his riches, prompted by his reading of the book ``Mere Christianity'' by C.S. Lewis. He also became an outspoken abortion opponent, which resulted in a nationwide boycott of Domino's by the National Organization for Women.
``It seemed like every bad thing I ever did in my life came through my mind, right from the time I was a little kid,'' the shy, soft-spoken Monaghan said in a 1994 interview. ``I realized how bad a person I really am. It was exciting because it showed I really have got some room for improvement and I can really do better.''
He also bought the Detroit Tigers in 1983, but sold the baseball team in 1992 to Detroit's other pizza magnate, Little Caesar's founder Mike Ilitch.Post your comments about local news eventsFront Page || Main Index || News || Business || Texas || South Texas Outdoors || Birdwatching || Sports || Entertainment || Selena || Education || South Texas Attractions || World Wide Web