BYRON TOWNSHIP, Mich. (WZZM) -- Grand Rapids-based Spartan Stores announced Monday that it has entered into a merger agreement with Nash Finch of Minneapolis, Minnesota.
The combination is expected to create a leader in the grocery wholesale, retail and military commissary channels, with annual sales of approximately $7.5 billion. Together Spartan Stores and Nash Finch will have 22 distribution centers covering 37 states, 177 retail stores and will be the leading distributor to military commissaries and exchanges in the United States.
Once the deal closes, Spartan Stores shareholders will own approximately 57.7% of the equity of the combined company, while Nash Finch shareholders will own approximately 42.3%.
Dennis Eidson, President and Chief Executive Officer of Spartan Stores in a conference call Monday morning said, "We will create one of the premier grocery wholesaler and retail operators, with a comprehensive portfolio of high quality private brands, nationwide distribution services and a strong platform for future growth. By combining our resources, expertise and talent we will become a stronger and more efficient organization with an enhanced ability to leverage our size, geographic reach and hybrid business model to better compete in the evolving grocery industry."
Eidson will also serve as President and CEO of the new combined company.
The company will retain a presence in both Grand Rapids and Minneapolis and Nash Finch's military business will continue to conduct its operations and remain based in Norfolk, Virginia.