You are here
Spartan Stores Inc. and Nash Finch Co. have completed their merger announced in July.
Spartan Stores, Inc. will use the corporate name of SpartanNash Company, with the official name change to SpartanNash effective in May 2014. The combined company will continue to conduct business as Spartan Stores, Nash Finch and MDV in their respective markets.
According to Dennis Eidson, president and CEO of Grand Rapids-based Spartan Stores, the merger “brings together two highly complementary organizations to form a leader in the grocery wholesale, retail and military commissary and exchange channels.”
Under the terms of the merger agreement, each share of Nash Finch common stock was converted into 1.20 shares of Spartan Stores common stock. Former Spartan Stores shareholders own approximately 57.7 percent of the equity of the combined company and former Nash Finch shareholders own approximately 42.3 percent. The combined company has approximately 38 million shares outstanding.
In addition to Craig Sturken, who will serve as chairman of the Board of Directors of SpartanNash, and Eidson, president and CEO, 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.
SpartanNash 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-$18 million will be recorded in the quarter ended Dec. 28, 2013.
Integration costs of $10-$11 million, $4-$5 million and $1-$2 million are expected to be incurred in fiscal years 2014, 2015 and 2016, respectively. The transaction is expected to be accretive to earnings per share, excluding the one-time integration and transaction costs, in fiscal 2014 which will end on Jan. 3, 2015.
SpartanNash’s core businesses include distributing food to military commissaries and exchanges and independent and corporate-owned retail stores located in 44 states and the District of Columbia, Europe, Cuba, Puerto Rico, the Azores, Bahrain and Egypt. SpartanNash currently operates 177 supermarkets under the banners of Family Fare Supermarkets, No Frills, Bag ‘n Save and Econofoods.