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NASH FINCH TO BUY FAIRWAY MICHIGAN

MINNEAPOLIS -- Nash Finch Co. here said last week it has entered into an agreement in principle to acquire the Michigan-based wholesale division of Fairway Foods here.ate last month it would shut down its two other wholesale food operations -- a 520,000-square-foot facility in Northfield, Minn., and a 170,000-square-foot operation in Fargo, N.D.The three Fairway facilities do approximately $70 million

MINNEAPOLIS -- Nash Finch Co. here said last week it has entered into an agreement in principle to acquire the Michigan-based wholesale division of Fairway Foods here.

ate last month it would shut down its two other wholesale food operations -- a 520,000-square-foot facility in Northfield, Minn., and a 170,000-square-foot operation in Fargo, N.D.

The three Fairway facilities do approximately $70 million in annual volume, according to SN estimates.

The warehouse Nash Finch is to acquire, located in Menominee, Mich., covers 225,000 square feet and serves customers in Michigan's upper peninsula and in Wisconsin.

Nash Finch said last week it is "actively pursuing" discussions with Fairway customers at the other two facilities, "and [we] expect that many of them will become Nash Finch customers."

Supervalu here said late last month it expects to begin supplying some of Fairway's former customers in mid-January.

Following completion of the warehouse sale, Nash Finch said, it would operate Fairway Foods/Michigan as a wholly owned subsidiary out of the existing Fairway facility, with expectations that members of Fairway's division management and warehouse associates would become Nash Finch employees.

James Lukens, president of Holiday's Fairway Foods division, plans to leave the company, a Fairway spokesman told SN.

Fairway's corporate parent, Holiday Cos., operates 300 combination convenience stores and gas stations called Holiday Stationstores and 30 Gander Mountain sporting goods stores in the Upper Midwest.