C&S Wholesale Grocers and SpartanNash Company on June 23 announced that C&S will acquire Byron Center, Michigan-based grocer SpartanNash for $1.77 billion.
“This is an exciting opportunity for our team members, partners and, notably, our customers. C&S and SpartanNash share many of the same values, including a strong emphasis on customers, teamwork and our communities,” C&S Chief Executive Officer Eric Winn said in a release. “Together, we are uniting some of the most advanced capabilities and boldest innovations in the distribution market to better serve communities across the natio(n).”
C&S, based in Keene, New Hampshire, which operates grocery chains across the country, is paying $26.90 per share of SpartanNash common stock. The transaction price represents a 52.5% premium over SpartanNash’s closing price on June 20 of $17.64, C&S said in a release, and a premium of 42% over its 30-day price as of June 20.
“We are energized by the opportunities this combination provides for our associates and customers. With our organizational values in close alignment, there will be exciting new career opportunities for our people and a continued commitment to a People Firstculture,” SpartanNash President and CEO Tony Sarsam said in a release.
SpartanNash, which has about 20,000 employees, operates grocery chains throughout the Midwest, including in Michigan, Indiana, Ohio, Kentucky, Iowa, Nebraska, Wisconsin and Minnesota, and Ontario, Canada.
In April, SpartanNash announced net sales increased in the first quarter 3.7% to $2.91 billion, driven by an increase in volume in retail, which partially offset by lower volume in the wholesale business. Retail net sales increased 19.6% to $947.2 million in the quarter due to incremental sales from acquired stores. Retail comparable store sales also increased 1.6%.
The merger is expected to close in late 2025, C&S said, subject to SpartanNash shareholder approval and applicable regulatory approvals. Wells Fargo has provided a debt financing commitment for the transaction.
“The combination of our two companies’ capabilities puts our collective customers’ stores and our own retail stores at the center of the plate, supporting their ability to thrive in a highly dynamic and competitive environment,” Winn said.
Here’s what to know.
What is happening to SpartanNash?
SpartanNash is being acquired by C&S Wholesale Grocers as part of a merger between the two companies.
“For our customers, this transaction creates the necessary scale, efficiency and purchasing power needed to enable independent retailers to compete more effectively with larger big box chains,” Sarsam said.
What is SpartanNash?
SpartanNash is a Michigan-based wholesale and retail grocery company, according to the SpartanNash website.
The business serves as a distributer, wholesaler and retailer with clients that includew companies, independent and chain grocery stores; e-commerce retailers and U.S. military commissaries and exchanges.
What brands does SpartanNash operate?
SpartanNash owns the following chain brands:
Where does SpartanNash operate distribution centers?
SpartanNash has distribution centers in:
How many people does SpartanNash employ?
The company says it has 20,000 employees.
What is C&S Wholesale Grocers?
C&S Wholesale Grocers is a New Hampshire-based wholesale grocery supplier, according to the company’s website. Clients include over 7,500 independent supermarkets, chain stores, military bases and institutions nationwide. According to Forbes, the company has about $34 billion in annual revenue.
Where does C&S operate?
The company currently operates in Maryland, Pennsylvania, Vermont, Texas, New Jersey, Louisiana, Massachusetts, Florida, Hawaii, New Hampshire, Florida, South Carolina, California, Oregon and Connecticut.
Why are the companies merging?
C&S Wholesale Grocers and SpartanNash agreed to the merger to combine distribution centers supporting independent retailers; provide customers lower prices with a larger, more efficient supply chain and provide customers access to affordable fresh food and pharmacies in their local areas, the news release said.
What is C&S’s history?
The company was founded in Worcester, Massachusetts in 1918. In 2021, it purchased Piggly Wiggly Midwest and has expanded that brand into New York and Vermont.
What is SpartanNash’s history?
In 1885, two brothers opened a candy and tobacco shop in North Dakota, later called Nash Finch. They began wholesaling and launched the Our Family brand in 1904.
Spartan Stores began in 1917 when 100 independent retailers banded together to purchase in bulk.
Nash Finch Company and Spartan Stores merged in November 2013 to form SpartanNash. Since then, SpartanNash has grown into a Fortune 400 food solutions company.
Contact Jenna Prestininzi: jprestininzi@freepress.com.
This article originally appeared on Detroit Free Press: Nationwide grocer to acquire Michigan’s SpartanNash. What we know
Reporting by Jenna Prestininzi, Detroit Free Press / Detroit Free Press
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