C&S Wholesale Grocers, LLC ("C&S") has announced its acquisition of SpartanNash Company for a purchase price of $26.90 per share, totaling $1.77 billion, including assumed net debt. This represents a significant premium of 52.5% over SpartanNash's closing price on June 20, 2025, and a premium of 42.0% to its 30-day volume-weighted average stock price as of the same date.
The transaction has received unanimous approval from the boards of directors of both companies. SpartanNash's previously announced quarterly cash dividend of $0.22 per common share will continue to be paid out on June 30, 2025.
C&S CEO Eric Winn expressed excitement about the merger, emphasizing the shared values of both companies and the potential to leverage their combined capabilities to better serve communities across the nation. He highlighted the aim to support customers' stores and retail locations, enhancing their ability to thrive in a highly dynamic and competitive environment.
SpartanNash President and CEO Tony Sarsam also expressed enthusiasm, noting the alignment of organizational values and the potential for new career opportunities for their associates. He stressed the transaction's significance in creating scale, efficiency, and purchasing power to enable independent retailers to compete more effectively with larger chains, ultimately preserving and strengthening local grocery stores.
The strategic rationale behind the merger includes the combination of complementary food distribution networks, with the combined company operating nearly 60 distribution centers and serving close to 10,000 independent retail locations, along with over 200 corporate-run grocery stores.
Furthermore, the merger is expected to result in greater efficiency and scale, leading to lower prices for grocery shoppers. The companies anticipate that this will translate to better pricing for community retailers and consumers, particularly in light of the low average profit margins in the grocery industry, which currently stand at only 1.6%.
The transaction is expected to close in late 2025, subject to certain customary closing conditions, including SpartanNash shareholder approval and regulatory approvals. C&S has secured financing commitments for the transaction, with Wells Fargo providing debt financing commitment.
In terms of advisory roles, Solomon Partners is serving as the exclusive financial advisor to C&S, while Gibson, Dunn & Crutcher LLP and Sullivan & Cromwell LLP are providing legal advisory services. On the SpartanNash side, BofA Securities, Inc. is serving as the exclusive financial advisor, with Cleary Gottlieb Steen & Hamilton LLP providing legal advisory services.
C&S Wholesale Grocers, LLC, founded in 1918, is an industry leader in supply chain solutions and wholesale grocery supply, servicing customers of all sizes and supplying over 100,000 different products to various outlets, including independent supermarkets, chain stores, military bases, and institutions.
SpartanNash (NASDAQ: SPTN) operates in the food solutions industry, serving wholesale customers and operating nearly 200 brick-and-mortar grocery stores, along with pharmacies and fuel centers with convenience stores. The company's global supply chain network serves various customers, including independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. Today the company's shares have moved 50.03% to a price of $26.4657. For the full picture, make sure to review SpartanNash Co's 8-K report.
