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‘SpartanNash’ Born of Merger
GRAND RAPIDS, Mich. — Spartan Stores here on Tuesday introduced a new corporate name: SpartanNash, following shareholder approvals of its merger with Minneapolis-based wholesaler Nash Finch.
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GRAND RAPIDS, Mich. — Spartan Stores here on Tuesday introduced a new corporate name: SpartanNash, following shareholder approvals of its merger with Minneapolis-based wholesaler Nash Finch.
The company said the official name change would take place following its annual meeting in May 2014, but on Tuesday a new website with that name and a new logo went live. The combined company will continue to conduct business as Spartan Stores, Nash Finch and MDV in their respective markets.
Follow @SN_News for updates throughout the day.
Shareholders of Spartan and Nash approved the merger during separate meetings Monday.
Under terms of the $1.3 billion deal, which was announced in July, each share of Nash stock will convert to 1.2 shares of Spartan stock. Former Spartan Stores shareholders own approximately 57.7% of the equity of the combined company and former Nash Finch shareholders own approximately 42.3%. The combined company has approximately 38 million shares outstanding.
“This merger brings together two highly complementary organizations to form a leader in the grocery wholesale, retail and military commissary and exchange channels,” Dennis Eidson, president and chief executive officer of Spartan Stores, said in a statement. “We would like to thank all of our stakeholders, including our shareholders, associates, customers and suppliers, for their support in completing this significant achievement. We look forward to leveraging our new platform with its broader customer base and geographic reach to create significant long-term value for our shareholders.”
Read more: New Business Sparks Spartan Gains
SpartanNash’s board of directors includes seven directors from Spartan Stores’ previous board and four directors from Nash Finch’s previous board. In addition to Craig Sturken, who will serve as chairman, and Eidson, the other members of the board include: M. Shan Atkins, Frank M. Gambino, Yvonne R. Jackson, Elizabeth A. Nickels and Timothy J. O’Donovan, former members of the board of directors of Spartan Stores; and William R. Voss, Mickey P. Foret, Douglas A. Hacker and Hawthorne L. Proctor, former members of the board of directors of Nash Finch.
The nine-member executive team led by Eidson includes three former Nash officers: Ed Brunot, executive vice president and president of the MDV military division; Kathy Mahoney, EVP, general counsel and secretary; and Peter O’Donnell, vice president, chief accounting officer/controller.
Read more: Shutdown Impacts Nash Sales in Q3
Along with completing the merger, SpartanNash has changed its fiscal year-end from the last Saturday in March to the Saturday closest to Dec. 31. This date change results in a transition period with a 15-week third quarter this year vs. a 16-week third quarter last year, and a 39-week fiscal year ending Dec. 28, vs. a 52-week fiscal year ending March 30. Approximately six weeks of Nash Finch’s sales and earnings contributions will be included in Spartan’s third quarter and fiscal year results.
SpartanNash said it expects that the transaction will create cost synergies of approximately $20 million, $35 million and $52 million in fiscal years 2014, 2015 and 2016, respectively. Integration and transaction closing-related costs of approximately $17 million to $18 million will be recorded in the quarter that ends Dec. 28, 2013.
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