C&S Wholesale Grocers to acquire SpartanNash for $1.77 billion

C&S Wholesale Grocers is buying SpartanNash in a deak valued at $1.77 billion.

SpartanNash is merging with C&S Wholesale Grocers in a move designed to enable the merged company and its customers to better compete against huge global grocers in the U.S. supermarket space.

C&S has agreed to acquire SpartanNash for $26.90 per share, representing total consideration of $1.77 billion, including debt. The offer represents a 52.5% premium over SpartanNash’s closing price on June 20. 

Together, the combined company will operate almost 60 complementary distribution centers covering the U.S. and will serve close to 10,000 independent retail locations, with collectively more than 200 corporate-run grocery stores. In a joint press release, the companies said the deal will provide a more efficient supply chain as well as an ability to secure the “best possible” delivered cost of goods and promotional discounts, which are expected to translate into lower prices for grocery shoppers.

C&S supplies more than 7,500 independent supermarkets, chain stores, military bases and institutions with over 100,000 different products. It also operates and supports corporate grocery stores and services independent franchisees under a chain-style model throughout the Midwest, South and Northeast.  

SpartanNash operates two complementary business segments: food wholesale and grocery retail. On the retail side, the company operates nearly 200 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin’s Super Markets and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers with convenience stores.