C&S Wholesale Grocers has agreed to acquire US-based food solutions company SpartanNash for $1.77bn in cash, including assumed net debt.
The acquisition price marks a 52.5% premium over SpartanNash’s recent stock valuations.
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The definitive merger agreement between C&S and SpartanNash has received unanimous approval from both companies’ boards of directors.
Subject to customary closing conditions, including shareholder and regulatory approvals, the transaction is expected to close in late 2025.
SpartanNash operates two complementary business segments: food wholesale and grocery retail.
The acquisition is anticipated to bring together 60 distribution centres across the US, serving 10,000 independent retail locations and more than 200 corporate-run grocery stores.
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By GlobalDataC&S CEO Eric Winn stated: “Together, we are uniting some of the most advanced capabilities and boldest innovations in the distribution market to better serve communities across the nation. At C&S […] our team members strive every day to take care of our customers’ stores as if they are our own. The combination of our two companies’ capabilities puts our collective customers’ stores and our own retail stores at the centre of the plate, supporting their ability to thrive in a highly dynamic and competitive environment.”
The merger will create a more efficient supply chain, enabling lower prices for grocery shoppers.
With grocery industry profit margins averaging 1.6%, the combined capabilities of C&S and SpartanNash are expected to deliver better value for food and household goods.
The combined company will focus on preserving accessible, affordable nutrition and pharmacy services, particularly in areas underserved by retail pharmacies and where access to fresh food is limited.
Wells Fargo has offered a debt financing commitment for the transaction.
SpartanNash shareholders will continue to receive a quarterly cash dividend of $0.22 per share, payable on 30 June 2025, for shares held as of the close of business on 13 June 2025.
SpartanNash president and CEO Tony Sarsam stated: “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. Neighbourhood grocers are essential pillars of our communities that we want to preserve and strengthen. A thriving hometown grocery store supports local farmers, bolsters the local economy and enhances the overall health and well-being of the community.”
In October 2024, SpartanNash announced the expansion of its retail footprint by entering an asset purchase agreement to acquire Markham Enterprises.
