MINNEAPOLIS -- Nash Finch Co. here said last week it has entered into a definitive agreement to acquire Hinky Dinky Supermarkets, Omaha, Neb., through a cash purchase of Hinky Dinky stock.
, "This is another exciting acquisition for Nash Finch Co., as we continue, as part of our strategic plan, to build a stronger retail presence in the Upper Midwest."
In June 1999, Nash Finch acquired Erickson's Diversified Corp., Hudson, Wis., the owner and operator of 18 stores in Minnesota and Wisconsin. Sales at these stores continue to exceed expectations, according to the company.
The Hinky Dinky acquisition would bring the number of Nash Finch corporate stores to 126, compared with 97 at the end of fiscal 1998.
"The acquisition of Hinky Dinky, one of our larger wholesale customers, complements and further expands our existing retail store base in Nebraska," added Marshall. "We look forward to working with an outstanding group of associates in these well-run stores and welcome them to the Nash Finch Company."
Marshall said no changes in employment at the store level are anticipated.
The acquisition is expected to be completed early next month, pending the satisfaction of customary closing conditions. Terms of the transaction were not disclosed.
As previously reported, Nash Finch's deal to acquire the Michigan-based whole division of Fairway Foods here, announced last November, was terminated last month.
At the time, Marshall said, "Our due diligence has led us to conclude that this acquisition does not, and will not, meet the business criteria we established for the transaction."
Nash Finch is a food wholesaler supplying products to independent supermarkets and military commissaries in approximately 30 states. The company also owns and operates 114 supermarkets, principally under the Econofoods, SunMart, Family Thrift Center and IGA banners.
