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SpartanNash Sees Up-Tick Post $217M Caito Acquisition

SpartanNash Sees Up-Tick Post $217M Caito Acquisition


GRAND RAPIDS, MI
Monday, November 7th, 2016

Since announcing its $217 million acquisition of Caito Food Service at the end of last week, SpartanNash’s stock has seen a consistent rise after its newly-expanded focus in protein-based prepared foods and other grocery favorites. 

Dennis Eidson, CEO & Chairman of the Board, SpartanNash"In short, this acquisition further strengthens our platform and enhances our ability to help our customers serve their consumers, benefiting our associates and the communities we serve, as well as delivering value for shareholders," said Dennis Edison, SpartanNash's CEO and Chairman of the Board, in a press release. 

The retailer’s stock went up from $27.46 per share to $28.71 after the acquisition was announced Friday, November 4. This increase was the largest spike the company has seen this quarter.

"We are excited about this opportunity to expand our presence in serving some of the fastest-growing categories in grocery, including fresh produce, value-added fruits and vegetables, and protein-based prepared food,” continued Edison. "Caito Foods Service is a premier distributor with best-in-class food processing facilities, including its new Fresh Kitchen. In addition, Caito's service area is complementary to our current distribution footprint, and we look forward to serving customers in new areas in addition to enhancing our offerings to existing customers."

As of yesterday, Nov. 7, the company’s numbers were still up to $28.60 as of 12:41 p.m. EST, +2.38%.

As a new part of the SpartanNash portfolio, Caito will bring the following to the company as a leading supplier: 

  • A distribution base spanning 22 states in the Southeast, Midwest, and Eastern United States
  • Combined annual revenue with BRT in excess of $600 million
  • Near-completed new 118,000-square-foot Fresh Kitchen facility, also in Indianapolis
  • A central fresh-cut fruit and vegetable facility in Indianapolis
  • Fresh Kitchen ($32 million) that is expected to be fully operational in the first quarter of 2017, set to process, cook, and package fresh protein-based foods and complete meals

SpartanNash will bring Caito President Robert Kirch, Blue Ribbon Transport President David Frizzell, and other members of Caito’s senior leadership team to the company along with the acquisition.

Robert Kirch, President, Caito"With our long history and family tradition of processing and distributing fresh, convenient, healthy foods, we are excited and proud to join an organization that shares our passion and commitment to serve customers with the freshest foods,” Kirch commented. “We are looking forward to joining the SpartanNash family to expand and enhance our combined ability to deliver high-quality fresh products efficiently to a greater number of customers across the country."

As SpartanNash looks to announce further plans for its fourth quarter later this week, Deli Market News will have the latest on strategic moves in the industry.

SpartanNash