Edina-Based Nash Finch to Merge with Spartan Foods
An Edina-based food wholesaler announced a billion-dollar merger Monday. Nash Finch is merging with Michigan-based Spartan foods.
The news sent stocks up.
Spartan stores agreed to buy Nash Finch in an all stock deal worth $1.3 billion.
The deal gives Spartan, which is based in Grand Rapids, Michigan, access to Nash Finch's business of supplying military commissaries; as well as adding to its grocery distribution unit.
The company will maintain offices in Edina and Grand Rapids.
Spartan foods will own 57.7% of the combined company and investors in Nash Finch will own the remaining.
The combined company with annual sales of about $7.5 billion will operate 22 distribution centers covering 37 states as well as 177 retail outlets.
The deal is expected to close by the end of the year and must be approved by the shareholders of both companies.
Shares of Nash Finch hit a 52-week high in Monday's session on the news.