Spartan Stores buys chain
Spartan Stores Inc. last week reported it has completed the acquisition of its largest independent distribution customer.
According to a report to the Securities and Exchange Commission, the publicly traded Spartan paid $85 million for the family-owned VG’s Food Center and VG’s Pharmacy Inc. in eastern Michigan, plus $17.2 million for inventory.
Spartan Stores’ annual consolidated sales are expected to rise by $150 million on the purchase of the Fenton-based company. The purchase is expected to boost annual retails by $300 million. With Spartan Stores just wrapping up its third quarter, the financial impact is expected to unfold in fiscal 2010. The deal includes 17 supermarkets and 15 pharmacies, but no gasoline stations.
“As we begin the integration process, we will bring our distinct and successful approach to marketing, merchandising and category management to these markets, while preserving the long-standing and exceptional shopping experience that VG’s has delivered to its customers for many years,” said Spartan President & CEO Dennis Eidson in a written statement.
The acquisition brings the number of Spartan retail supermarkets to 101 under five banners: Family Fare Supermarkets, D&W Fresh Markets, Felpausch Food Centers, Glen’s Markets and VG’s Food and Pharmacy.
VG’s was a 50-year old chain owned by the Van Gilder family and stretching from the Flint area east into St. Clair County’s Marine City. It gives Spartan its first retail presence on the east side of the state.