This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Spartan Stores Acquires Nash-Finch

NEW YORK ( The Deal) -- Grocery store chain Spartan Stores (SPTN - Get Report) announced Monday, July 22, that it agreed to merge with rival Nash-Finch (NAFC) for about $1.3 billion in stock, including debt, the latest in a string of grocery store deals.

Nash shareholders will receive 1.20 shares of Spartan common stock for each Nash share they own. After the merger closes, expected by the end of the year, Spartan will own 57.7% of the new combined company while Nash shareholders will own the remaining 42.3%.

Minneapolis-based Nash operates 75 stores mainly in the Midwest including Nebraska, North Dakota, Ohio and Iowa under the Family Fresh Market, Bag 'n' Save, Sun Mart and EconoFoods brands. It also has a food distribution division and a military distribution channel.

Spartan of Grand Rapids, Mich., owns 102 grocery stores, mostly in Michigan under the Family Fare Supermarkets, Glen's Markets and D&W Fresh Markets brands. It has its own food distribution channel as well. Both companies have their own self-titled private label food brands.

The new combined company will have about $7.5 billion in annual sales on a pro forma basis, with 177 retail stores along with 22 distribution centers across 37 states.

The merger agreement does not allow for a go-shop period. Nash has to pay Spartan a termination fee of up to $12 million if it accepts another bid. Spartan CEO Dennis Eidson said Monday that the new combined company will have more financial strength to expand geographically and be able to compete better in the consolidating grocery store sector. "Together, we will create one of the premier grocery wholesaler and retail operators with a comprehensive portfolio of high quality brands," Eidson said.

Nash CEO Alec Coving added: "The complementary operation and outstanding strategic fit of these two companies create significant value for both companies' shareholders."

Eidson will lead the new combined company and Covington will stay on in an advisory role during the transition period.

The two companies expect to reach up to $50 million in annual synergies by the third full year of operations.

Retailers have had an appetite for regional grocery store chains of late. Earlier this month, Kroger agreed to acquire Harris Teeter Supermarkets for about $2.4 billion to expand its presence in the mid-Atlantic and Southeast. Also this month, Brampton, Ontario-based Loblaw agreed to acquire Toronto's Shoppers Drug Mart for about $12 billion.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NAFC $28.29 0.32%
SPTN $22.55 0.40%
AAPL $118.03 -0.71%
FB $105.41 -0.31%
GOOG $748.15 -0.02%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs