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GRAND RAPIDS, Mich. — Spartan Stores Inc. and Nash Finch Co. have agreed to merge in an all-stock transaction valued at approximately $1.3 billion. The boards of directors of both companies have unanimously approved the combination.
Spartan Stores Inc. and Nash Finch Co. have agreed to merge in an all-stock transaction valued at approximately $1.3 billion. The boards of directors of both companies have unanimously approved the combination.
The merger will create a grocery wholesale and retail enterprise with pro forma annual sales of about $7.5 billion. The combined company will have 22 distribution centers serving 37 states as well as 177 retail grocery outlets. The company will also be a leading distributor to military commissaries and exchanges in the United States.
Among the combined assets are a strong portfolio of private brands that includes Spartan Stores’ Spartan brand and Nash Finch’s Our Family and Nash Brothers Trading Co.
Under the terms of the deal, Nash Finch shareholders will receive a fixed ratio of 1.2 shares of Spartan Stores common stock for each share of Nash Finch stock they own. Upon closing, which is expected by the end of this calendar year, Spartan shareholders will hold around 57.5% of the combined company’s equity while Nash Finch shareholders will own about 42.3%.
"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 through the U.S.," said Dennis Eidson, president and chief executive officer of Spartan Stores. "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."
Eidson added that combining the resources and expertise of the two companies will create a stronger organization with greater ability to leverage its size, geographic scale and hybrid business model, while its scale will deliver savings in purchasing that will strengthen its ability to serve independent retail customers, military commissaries and exchanges, and retail consumers.
In the combined company, Eidson will take the role of president and CEO, while Alec Covington, president and CEO of Nash Finch, will serve in an advisory role to ensure a smooth transition. Edward Brunot, president of Nash Finch’s military business, will continue in that position in the combined company, while Craig Sturken, chairman of Spartan Stores’ board, will serve as chairman of the board of the combined company.
