Regional grocery chain Pathmark Stores Inc has announced that the its shareholders have approved a $150m investment in Pathmark by The Yucaipa Companies LLC at a special meeting.

Of the 21.9 million shares voted, over 83% voted in favour of the proposal. The transaction is expected to close shortly.

"We are pleased with the support shown by our stockholders for the agreement with Yucaipa," said Eileen Scott, CEO of Pathmark. "With the new investment and Yucaipa's industry expertise, Pathmark will be in a strong position to pursue opportunities to create meaningful value for stockholders and better serve our customers. We are energized and confident as we move forward to realize the great potential of this partnership."

"The results from today's meeting show that Pathmark stockholders clearly recognize the compelling strategic and economic benefits of this transaction," said Yucaipa's founder, Ron Burkle. "Pathmark has tremendous assets on which to build, and we are eager to work with the Pathmark team to help the company capitalize on its strong market position and competitive advantages."

Under the terms of the agreement The Yucaipa Companies LLC, a Los Angeles based private equity firm, will purchase from Pathmark 20,000,000 newly-issued shares of the company's common stock, Series A warrants to purchase 10,060,000 shares of the company's common stock and Series B warrants to purchase 15,046,350 shares of the Company's common stock for an aggregate purchase price of $150m in cash.

The 20,000,000 shares will represent approximately 40% of Pathmark's outstanding common stock.