Together, Spartan Stores and Minneapolis-based Nash Finch will have 22 distribution centers serving 37 states, will operate 177 retail stores and will be the leading distributor to military commissaries and exchanges in the United States. They will have combined pro forma annual sales of about $7.5 billion.
Nash Finch, which had revenues of about $4.8 billion last year, will become a subsidiary of Spartan Stores, which had revenues of $2.6 billion.
Under the terms of the transaction, which has been unanimously approved by the boards of directors of both companies, Nash Finch shareholders will receive a fixed ratio of 1.2 shares of Spartan Stores common stock for each share of Nash Finch common stock they own. Upon closing, which is expected by the end of calendar 2013, Spartan Stores shareholders will own approximately 57.7% of the equity of the combined company, and Nash Finch shareholders will own approximately 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 throughout the U.S.,” said Dennis Eidson, president and chief executive officer of Spartan Stores.
Eidson will remain president and CEO of the combined companies. Alec Covington, president and CEO of Nash Finch, will remain in an advisory capacity. The combined company, which will retain a presence in both Minneapolis and Grand Rapids, will include members of each company’s management teams and employee bases. Nash Finch’s military business will remain based in Norfolk, Va., led by Edward Brunot, president of that division.
Craig Sturken, chairman of Spartan Stores’ board of directors, will be chairman of the board of the combined company.
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