Keene, New Hampshire, U.S.A.-based wholesale grocery supplier C&S Wholesale Grocers is acquiring SpartanNash, marking the latest instance of consolidation in the U.S. grocery market.
C&S announced it will acquire Grand Rapids, Michigan, U.S.A.-based SpartanNash for USD 1.77 billion (EUR 1.5 billion), or USD 26.90 (EUR 23.24) per share of SpartanNash common stock, in cash.
SpartanNash is a wholesale food business and operates around 200 grocery stores, while C&S is a major supplier to 7,500 independent and chain grocery stores, operating its own stores as well. The combined company will operate nearly 60 complementary distribution centers covering the U.S., will serve close to 10,000 independent retail locations, and will collectively operate more than 200 corporate-run grocery stores.
“This is an exciting opportunity for our team members, partners, and, notably, our customers. C&S and SpartanNash share many of the same values, including a strong emphasis on customers, teamwork, and our communities,” C&S CEO Eric Winn said. “Together, we are uniting some of the most advanced capabilities and boldest innovations in the distribution market to better serve communities across the nation.”
The exact impacts the move will have on seafood suppliers is not yet clear, but C&S and SpartanNash said the merger will “enable 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 to better pricing for community retailers and at the shelf for consumers.”
The merger “creates the necessary scale, efficiency, and purchasing power needed to enable independent retailers to compete more effectively with larger big box chains,” SpartanNash President and CEO Tony Sarsam said.
In May, C&S announced it would close one of its distribution centers in Baldwin, Florida, U.S.A., resulting in 490 job cuts. C&S was previously set to acquire around 600 stores as part of the merger between grocery chains Kroger and Albertsons. After the merger failed, C&S said it would lay off at least 76 employees at sites in Hawaii, Vermont, New Jersey, Texas, and New York.
Another bit of fallout from the failed merger was the recent announcement that Cincinnati, Ohio, U.S.A.-based Kroger plans to close around 60 stores in the next 18 months.
“As a result of these store closures, Kroger expects a modest financial benefit. Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance,” the company said, adding that it plans to offer roles in other stores to all associates currently employed at the stores that will be closed.
