Fleming ( FLM) signed a $4.5 billion agreement to supply all of the food and consumable products sold in Kmart ( KM) stores.
Fleming closed New York Stock Exchange trading at a 52-week high, gaining 45.4% to $24.40. Kmart rose 45 cents, or 5.3%, to $8.89. Fleming will supply the discount retailer, which is based in Troy, Mich., with meat, produce, frozen foods, dairy and other grocery items. Kmart also plans to adopt Fleming's BestYet private label program in its stores. The companies are also considering expanding their alliance to health and beauty products and related categories, but several months of discussions will follow before the details of the agreement are finalized. Fleming, which is based in Oklahoma City, markets food and related products and offers retail services to supermarkets in 41 states.