C&S Wholesale Grocers announced today it has agreed to purchase food solutions company SpartanNash for a total consideration of $1.77 billion, including debt.
The transaction price of $26.90 per share of SpartanNash common stock in cash represents a 52.5% premium over its closing price on June 20 of $17.64.
Founded in 1917 as Spartan Stores, SpartanNash operates two business segments: food wholesale and retail grocery. The Michigan-based company distributes products spanning all grocery segments, including fresh produce, household goods, as well as its OwnBrands, which includes the Our Family private label products portfolio.
On the retail side, SpartanNash operates nearly 200 brick-and-mortar grocery stores under the Family Fare, Martin’s Super Markets and D&W Fresh Market banners. Additionally, the company manages dozens of pharmacies and fuel centers, which feature convenience stores.
According to Eric Winn, CEO of C&S, the deal will “[unite] some of the most advanced capabilities and boldest innovations in the distribution market to better serve communities across the nation.”
The combined entity will operate nearly 60 distribution centers nationwide and serve approximately 10,000 independent retail locations, with more than 200 corporate-run grocery stores collectively. Operating on a larger scale will enable greater supply chain efficiency and the ability to secure the best possible delivered cost of goods and promotional discounts, per today’s press release.
Profit margins in the grocery industry currently average 1.6%, but SpartanNash and C&S claim that the stability of the combined company will allow it to better compete against larger global grocery chains, a more than $1 trillion annual industry.
“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,” said Tony Sarsam, president and CEO of SpartanNash, in a press release.
He continued: “A thriving hometown grocery store supports local farmers, bolsters the local economy and enhances the overall health and well-being of the community.”
For C&S, the transaction represents a new chapter following the termination of the proposed $24.6 billion merger agreement between The Kroger Company and Albertsons Companies., The grocery giants planned to divest up to 579 stores to C&S to secure U.S. regulatory approval for the megamerger.
“The combination of [C&S and SpartanNash’s] capabilities puts our collective customers’ stores and our own retail stores at the center of the plate, supporting their ability to thrive in a highly dynamic and competitive environment,” said Winn in a statement.
In Q1 2025, SpartanNash grew net sales 3.7% to $2.91 billion, driven by an increase in volume in its retail segment, partially offset by lower volume in its wholesale segment. Net earnings were $2.1 million compared to $13 million in the prior year period due to planned increases in depreciation and amortization expenses.
The transaction is expected to close in late 2025, subject to certain customary closing conditions.
Solomon Partners is serving as the exclusive financial advisor to C&S, while Gibson, Dunn & Crutcher is serving as its legal advisor. BofA Securities, Inc. is serving as the exclusive financial advisor to SpartanNash.