Spartan Stores, Inc. and Nash Finch Company announced a merger agreement early this morning.
The Associated Press reported the following:
Food distributor Spartan Stores is buying Nash Finch in an all-stock deal valued at about $312 million. The move announced Monday by Grand Rapids, Mich.-based Spartan Stores will expand its distribution area. Nash Finch is a major grocery distributor to military commissaries. Spartan Stores has grocery distribution and retail operations in Michigan, Indiana and Ohio while Nash Finch's military commissaries distribution activities are supported by a wholesale grocery network. [...] Nash Finch's military business will continue to be based in Norfolk, Va.
The deal has an all-stock merger value of approximately $1.3 billion. As a combined entity, the companies have annual sales of approximately $7.5 billion.
According to Spartan Stores' press release, Spartan and Nash Finch will have 22 distribution centers covering 37 states. They will have 177 retail stores and will become a leading distributor to military commissaries and exchanges in the US.
In the press release, Dennis Eidsen, the President and Chief Executive Officer of Spartan Stores said:
"This transformational transaction provides a unique opportunity to bring together Spartan Stores' grocery distribution and retail operations in Michigan, Indiana and Ohio with Nash Finch's leading position in grocery distribution to military commissaries and exchanges and its complementary wholesale grocery network throughout the U.S. Together, we will create one of the premier grocery wholesaler and retail operators, with a comprehensive portfolio of high quality private brands, nationwide distribution services and a strong platform for future growth. By combining our resources, expertise and talent we will become a stronger and more efficient organization with an enhanced ability to leverage our size, geographic reach and hybrid business model to better compete in the evolving grocery industry.”
Spartan Stores, Inc. is based in Grand Rapids, Michigan and is the nation’s ninth largest grocery distributor.
It was first organized in 1917 and it currently owns and operates 101 supermarkets throughout Michigan. In March it was ranked one of Forbes 100 Most Trustworthy Companies.
-Julia Field, Michigan Radio Newsroom
