C&S Wholesale Grocers, LLC has struck a merger and acquisition deal with SpartanNash in a move where the two will collaborate to serve thousands of retailers and operate hundreds of grocery stores. The agreement, representing a 52.5 percent premium from Friday's close, values SpartanNash at $1.77 billion, or $26.90 per share.
It's unclear what the plans are for potential rebranding, but the two parties will operate as a combined company, according to a statement by C&S. This will allow them to serve nearly 10,000 independent retailers, operate nearly 60 national complementary distribution centers and over 200 grocery stores. According to SpartanNash, it operates almost 200 grocery locations in 10 states, most of which are in the Midwest. Some of its store brands include Family Fare, Martin's Super Markets, VG's Grocery and D&W Fresh Market.
C&S said that the merger will allow the duo to operate "a more efficient supply chain," score favorable prices and potentially discounts on the cost of goods. As a result, the Keene, New Hampshire-based company expects this will help make groceries more affordable for millions of Americans.
"Together, we are uniting some of the most advanced capabilities and boldest innovations in the distribution market to better serve communities across the nation. At C&S, we have a legacy of braggingly happy customers, and our team members strive every day to take care of our customers' stores as if they are our own," Eric Winn, CEO of C&S, said in a statement.
"The combination of our two companies' capabilities puts our collective customers' stores and our own retail stores at the center of the plate, supporting their ability to thrive in a highly dynamic and competitive environment. Our customers need us more than ever, and we are building a sustainable platform for our team members to be able to support them long into the future," said C&S Chief Executive Officer Eric Winn.
With the deal already approved by the boards at both companies, the transaction is set to close later this year and remains subject to customary conditions.
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