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Grocery company acquiring $450M supermarket chain
A local grocery chain is expanding its footprint in the Midwest via an acquisition.
Byron Center-based SpartanNash said today it signed an agreement to acquire South Bend, Indiana-based Martin’s Super Markets.
The transaction — which will expand SpartanNash’s corporate retail footprint into northern Indiana and southwestern Michigan — is expected to close early in the first quarter of 2019, subject to customary closing conditions.
Terms of the deal were not disclosed.
“Martin’s has been a valued independent retail customer since 2005, and we have the greatest respect for Martin’s management team and its commitment to their associates, customers and the communities they serve,” said David Staples, president and CEO, SpartanNash.
“We look forward to working with members of the team to continue to deliver the quality shopping experience and high level of customer service to Martin’s customers.”
Rob Bartels, Martin’s president and grandson of its founders, said the business was seeking “a partner we could trust with the family’s legacy.”
“We found that partner in SpartanNash,” Bartels said. “SpartanNash has been a valued and capable partner, and our partnership has grown and strengthened over time. We share similar values, a passion for the business and cultures based on excellent customer service, stewardship of our brands and commitment to our communities and teams. We look forward to a robust and dynamic future for the Martin’s family.”
Washington, D.C.-based The Food Partners acted as financial advisor to SpartanNash on this transaction, and Grand Rapids-based Warner Norcross + Judd acted as legal advisor.
New York-based PJ SOLOMON acted as Martin’s financial advisor, and New York-based Simpson Thacher & Bartlett acted as Martin’s legal advisor.
Founded in 1947, Martin’s operates 21 stores in northern Indiana and southwest Michigan.
The company also operates 17 in-store pharmacies, a pharmacy at Saint Joseph Health System in Mishawaka, Indiana, a Martin’s Express convenience store in South Bend and a Side Door Café at Elkhart General Hospital.
Martin’s has about 3,500 employees.
The company had more than $450 million in net sales for the fiscal year ended July 29, 2018.
SpartanNash (Nasdaq: SPTN) is a distributor of grocery products to independent grocery retailers, national accounts, its corporate-owned stores and U.S. military commissaries and exchanges.
It serves customer locations in all 50 U.S. states and the District of Columbia, Puerto Rico, Cuba, Europe, Bahrain, Djibouti and Egypt.
SpartanNash also operates 139 supermarkets, primarily under the banners of Family Fare Supermarkets, D&W Fresh Market, VG’s Grocery, Dan’s Supermarket and Family Fresh Market.
The company had 2017 revenue of $8.13 billion.