Another big merger in the grocery business

Associated Wholesale Grocers has announced it will merge with Affiliated Foods Midwest Cooperative, forming one of the largest grocery cooperatives in the United States, with operations stretching across the middle of the country.

Kansas City, Kansas-based Associated Wholesale Grocers (AWG) supplies more than 3,000 stores in 30 U.S. states and Norfolk, Nebraska-based Affiliated Foods Midwest Cooperative (AFM) supplies more than 800 stores in 15 states. The merger, which is still subject to approval by AFM shareholders, will give the combined entity economies of scale and increased buying power, according to a joint press release.

“This exciting endeavor is exactly what we need to allow our retailers to compete, grow and be profitable. The synergies between the two distributors will help members grow through a lower cost of goods,” AFM President and CEO Martin Arter said. “Much credit is due to the vision of both AWG’s and AFM’s boards of directors to see the possibilities of what we could become.”

The transaction is expected to be met by approval from stockholders, and if it does, the merger will be finalized by the end of the year, the companies said.

“Combining our distribution center networks and support infrastructure will allow us to more effectively serve our growing numbers of independent member-retailers,” AWG President and CEO David Smith said. “This unified business will further strengthen our relationship with the vendor community, reduce operating expenses and subsequent cost of goods, and enhance our ability to support and serve our growing membership.”

Subscribe

Want seafood news sent to your inbox?

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500
None