GRAND RAPIDS, Mich. — Spartan Stores here yesterday said it has completed the acquisition of the 17-unit VG's Food & Pharmacy chain, which is the wholesaler's largest customer.
The $85 million, all-cash transaction had been announced in October. The deal is expected to increase Spartan's retail sales by $300 million. The acquisition is expected to be dilutive to net income in the fourth quarter, but accretive to earnings in fiscal 2010.
"This transaction provides us with the opportunity to sustain our long-term performance improvement record, capture additional operational synergies and serve communities in key Michigan markets where we had no retail presence," said Dennis Eidson, chief executive officer, Spartan. "As we begin the integration process, we will bring our distinct and successful approach to marketing, merchandising, and category management to these markets, while preserving the long-standing and exceptional shopping experience that VG’s has delivered to its customers for many years."
Spartan previously said it would keep the VG's name on the stores.
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