MINNEAPOLIS -- Nash Finch Co. here said last week it has entered into a definitive agreement to acquire United-A.G. Cooperative, Omaha, Neb., for an undisclosed amount of cash.
billion, as the nation's third largest wholesaler. The acquisition is expected to be completed in June.
Under the agreement, Nash Finch would acquire substantially all of the cooperative's assets, including a 530,000-square-foot full-line distribution center.
United-A.G. is a $200 million company that serves approximately 100 member-owned stores in Nebraska, Kansas, Iowa, Colorado and South Dakota. It explored a merger in 1994 with Affiliated Foods Cooperative, Norfolk, Neb., but those discussions were eventually terminated.
Norman R. Soland, Nash Finch vice president, secretary and general counsel, said the company does not anticipate any problems converting the cooperative's member-owners to a more traditional wholesaler. "This acquisition is very similar to other acquisitions of non-co-op wholesalers, and we believe we can deal with any problems that may arise in the normal course of business," he told SN.
Al Flaten, Nash Finch president and chief executive officer, said the pending acquisition "is another example of Nash Finch's commitment to growth through strategic acquisitions." The distributor's most recent acquisitions include Super Food Services, Miamisburg, Ohio, in November for approximately $164 million; T.J. Morris Co., Statesboro, Ga., last July for common stock, and Military Distributors of Virginia, Norfolk, Va., in January 1996 for approximately $100 million.
Flaten said Nash Finch has a strong presence in the areas in which United-A.G.'s customers are located "and the addition of United A.G.'s operations offers the opportunity to realize significant synergies in that region."