Fratelli Beretta - Over 200 Years of Bringing Families Together - For Passion - For Quality
Rougette Bonfire Feta-Style Traybake
Spartan Stores and Nash Finch Company Complete Merger as SpartanNash Company

Spartan Stores and Nash Finch Company Complete Merger as SpartanNash Company


GRAND RAPIDS, MI

SpartanNash, the name of the new company formed by the merger between Spartan Stores and Nash Finch Company, is expected to become effective during the annual shareholders meeting in May 2014. The combined company will continue to conduct business as Spartan Stores, Nash Finch, and MDV in their respective markets.

“This merger brings together two highly complementary organizations to form a leader in the grocery wholesale, retail and military commissary, and exchange channels,” said Dennis Eidson, President and CEO of Spartan Stores and now, SpartanNash. “We would like to thank all of our stakeholders, including our shareholders, associates, customers and suppliers, for their support in completing this significant achievement. We look forward to leveraging our new platform with its broader customer base and geographic reach to create significant long-term value for our shareholders.”

The completed merger was announced during separate shareholder meetings in which over 99% of Spartan shares voted in favor on the proposed issuance of stock to Nash Finch stockholders, while 98% of Nash Finch shares voted in favor of the merger, according to a press release. Each share of Nash Finch common stock was converted into 1.20 shares of Spartan Stores common stock. Former Spartan shareholders own nearly 57.7% of the equity of the combined company and former Nash Finch shareholders own nearly 42.3%. The combined company has approximately 38 million shares outstanding.

SpartanNash’s Board of Directors includes seven directors from Spartan and four from Nash Finch’s previous board. Craig Sturken will serve as Chairman. Other Board members include: M. Shan Atkins, Frank M. Gambino, Yvonne R. Jackson, Elizabeth A. Nickels and Timothy J. O'Donovan, former members of the board of directors of Spartan Stores and William R. Voss, Mickey P. Foret, Douglas A. Hacker and Hawthorne L. Proctor, former members of the board of directors of Nash Finch.

In addition, SpartanNash’s fiscal year will now end on the Saturday closest to December 31, creating a 39-week fiscal year ending December 28, 2013. Approximately 6 weeks of Nash Finch’s sales and earnings contributions will be included in Spartan’s third quarter and fiscal year results.

SpartanNash expects the transaction will create cost synergies of approximately $20 million, $35 million, and $52 million in fiscal years 2014, 2015, and 2016, respectively. Integration and transaction closing related costs of approximately $17 million to $18 million will be recorded in the quarter ended December 28, 2013.

How will this new merger affect the company’s upcoming financial reports?

Stay tuned to DeliMarket TV for more news on SpartanNash.

SpartanNash

Topics: