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HASTINGS, Mich. - On the heels of selling his 20 retail grocery stores, two fuel centers, and three convenience stores to Spartan Stores, Mark Feldpausch, c.e.o. of G&R Felpausch Co. here, called the deal "a natural fit with Spartan's retail network."
The transaction, which was tendered earlier this week, is expected to increase Spartan's annual retail sales by approximately $200 million and is further expected to be accretive to net earnings during the second year of operation.
David Iverson, a managing director of Goldsmith Agio Helms, a Minneapolis-based independent investment banking firm who brokered the deal, said the transaction "is an important milestone for both parties.
"The Feldpausch family founded Felpausch 75 years ago and worked alongside its associates to build the company into one of the most successful independent retail grocery chains in Michigan," Helms said. "Spartan Stores' acquisition of Felpausch will provide its employee-shareholders the ability to realize their long-term investment in the company while maintaining and enhancing the same shopping experience and family-culture for its customers."
The addition of Felpausch's locations to Spartan's retail network "allows the two companies to continue their shared vision of providing an unsurpassed customer experience and product quality - further differentiating themselves from other competing grocery formats," said Sean Daugherty, also of Goldsmith Agio Helms. "This is a highly strategic combination as it provides Spartan with enhanced distribution opportunities and greater private label product placement in key markets."