Subscribe for free to our flagship newsletter, MMR: This Week in Retail, for updates and insights across the omnichannel retail spectrum.

Skip to content

C&S to buy SpartanNash

Once complete, the combined company will operate as a private entity under the C&S banner, taking SpartanNash off public markets.

KEENE, N.H. and GRAND RAPIDS, Mich.—In a move set to reshape the U.S. grocery supply chain and retail landscape, C&S Wholesale Grocers announced on Monday it will acquire SpartanNash in an all-cash transaction valued at approximately $1.77 billion, or $26.90 per share, representing a 52.5% premium to SpartanNash’s closing stock price on June 20.

The merger combines two industry stalwarts in wholesale grocery distribution and retail, intending to create a national platform focused on improved scale, cost efficiencies, and value for independent retailers and consumers. The boards of directors of both companies have unanimously approved the agreement.

A Strategic Shift Amid Intense Grocery Competition

Headquartered in Keene, New Hampshire, C&S is one of the largest wholesale grocery suppliers in the U.S., serving over 7,500 independent supermarkets, chain stores, and military bases. SpartanNash, based in Grand Rapids, Michigan, operates more than 140 grocery stores under banners like Family Fare, Martin’s Super Markets, and D&W Fresh Market, while also servicing 2,100 independent grocers and military commissaries.

The acquisition will significantly expand C&S’s retail footprint and distribution capacity. The combined business is expected to operate nearly 60 distribution centers and more than 200 grocery stores across the U.S.

“This is an exciting opportunity for our team members, partners and, notably, our customers. C&S and SpartanNash share many of the same values, including a strong emphasis on customers, teamwork and our communities. Together, we are uniting some of the most advanced capabilities and boldest innovations in the distribution market to better serve communities across the nation,” said C&S Chief Executive Officer Eric Winn. “At C&S, we have a legacy of braggingly happy customers, and our team members strive every day to take care of our customers’ stores as if they are our own. The combination of our two companies’ capabilities puts our collective customers’ stores and our own retail stores at the center of the plate, supporting their ability to thrive in a highly dynamic and competitive environment. Our customers need us more than ever, and we are building a sustainable platform for our team members to be able to support them long into the future.”

According to the announcement, the following is the “Compelling Strategic Rationale” behind the deal:

  • Complementary Food Distribution Networks to Better Support Independent Retailers: Together, the combined company will operate almost 60 complementary distribution centers covering the U.S. and will serve close to 10,000 independent retail locations, with collectively more than 200 corporate-run grocery stores. 
  • Greater Efficiency and Scale Expected to Result in Lower Prices for Grocery Shoppers: Being able to operate at a larger scale, supported by the combined innovative capabilities of the two companies, enables a more efficient supply chain as well as an ability to secure the best possible delivered cost of goods and promotional discounts, which are expected to translate to better pricing for community retailers and at the shelf for consumers. Profit margins in the grocery industry are very low — averaging only 1.6%[1] — and customers and consumers deserve the best value for food and household goods. The stability of the combined organization will allow the combined company and its customers to better compete against various extremely large global grocers in the U.S. food-at-home space, a more than $1 trillion annual industry.[2]
  • Preserves Accessible, Affordable Nutrition and Pharmacy Services in Local Communities: Nearly half of all U.S. counties have at least one pharmacy desert[3] — a 10-mile radius with no retail pharmacy — and an estimated 5.6% of the American population lives in a food desert.[4] Providing families with access to fresh food, essential prescription medications and health services is at the core of the combined company’s operations, distributing to community retailers and operating corporate grocery stores and pharmacies.

Strengthening Communities and Reducing Redundancy

For Tony Sarsam, President and CEO of SpartanNash, the transaction represents a strategic evolution. “We are energized by the opportunities this combination provides for our Associates and customers. With our organizational values in close alignment, there will be exciting new career opportunities for our people and a continued commitment to a People First culture,” Sarsam said. “For our customers, this transaction creates the necessary scale, efficiency and purchasing power needed to enable independent retailers to compete more effectively with larger big box chains. Neighborhood grocers are essential pillars of our communities that we want to preserve and strengthen. A thriving hometown grocery store supports local farmers, bolsters the local economy, and enhances the overall health and well-being of the community.”

Financing and Deal Timeline

C&S plans to finance the transaction through cash on hand and committed debt financing from Wells Fargo. The deal is expected to close in the fourth quarter of 2025, pending regulatory approvals and a vote by SpartanNash shareholders.

Once complete, the combined company will operate as a private entity under the C&S banner, taking SpartanNash off public markets.

A Signal of More Consolidation to Come?

Industry watchers note this deal could accelerate further consolidation in the grocery sector as companies race to streamline supply chains, reduce overhead, and stay competitive.

For now, all eyes are on regulators, suppliers, and the independent grocers that rely on both companies to deliver value in a changing grocery environment.

Comments

Latest