SpartanNash Has Been Bought Out For Nearly $2 Billion

One of Michigan's largest employers has made a shocking announcement: it is being acquired for nearly $2 billion in cash. SpartanNash is well known around the country, but especially in West Michigan, where it has been headquartered in Byron Center. The company has been public since 2000 (SPTN).

While its core focus remains unchanged, who will be calling the shots has changed, as SpartanNash announced this morning that it has entered a merger agreement with C&S Wholesale Grocers. It will acquire SpartanNash for "a purchase price of $26.90 per share of SpartanNash common stock in cash", totaling $1.77 billion.

Who Is C&S Whole Grocers?

Founded in 1918, C&S has been dedicated to delivering food to communities and wholesale grocery stores around the US. It has expanded over the years to absorb many different wholesalers, with about 7,500 supermarkets, chain stores, military bases, and institutions under its belt. It most recently purchased the Piggly Wiggly brand.

Why SpartanNash Is Being Bought

At its core, SpartanNash has a "People First" culture, which aligns with C&S's mission. Both companies are recognized for prioritizing their employees and supporting the communities in which they are present. According to a press release, C&S Chief Executive Officer Eric Winn stated that,

"The combination of our two companies...puts our collective customers' stores and our retail stores at the center of the plate."

Tony Sarsam, President and CEO of SpartanNash, elaborated on how this merger will benefit the community:

For our customers, this transaction creates the necessary scale, efficiency, and purchasing power needed to enable independent retailers to compete more effectively with larger big-box chains...A thriving hometown grocery store supports local farmers, bolsters the local economy.

An exact reason for the sale was not given; however, the overall goal of this merger is to get more food to more people who need it. Considering SpartanNash owns over 200 grocery stores and helps supply wholesale stores nationwide, both companies believe that merging will help achieve this goal.

By the Numbers

The new company will now consist of ~60 distribution centers around the US and serve nearly 10,000 independent retail locations, as well as 200 corporate-run grocery stores. This deal is expected to be completed by the end of 2025. So far, no details have been announced regarding how this will impact SpartanNash's nearly 20,000 employees.