Spartan Stores Inc (Nasdaq: SPTN) and Nash Finch Company (Nasdaq: NAFC) have announced the completion of their merger. Spartan Stores will use the corporate name of SpartanNash Company, with the official name change to SpartanNash expected to become effective at the annual shareholders meeting in May 2014.
The combined company will continue to conduct business as Spartan Stores, Nash Finch, and MDV in their respective markets. The common stock of SpartanNash will trade under the symbol “SPTN” on the Nasdaq Stock Exchange beginning November 19.
“This merger brings together two highly complementary organizations to form a leader in the grocery wholesale, retail, and military commissary and exchange channels,” said Dennis Eidson, president and chief executive officer of Spartan Stores. “We would like to thank all of our stakeholders, including our shareholders, associates, customers and suppliers, for their support in completing this significant achievement. We look forward to leveraging our new platform with its broader customer base and geographic reach to create significant long-term value for our shareholders.”
Spartan Stores and Nash Finch shareholders approved the merger during separate shareholder meetings. More than 99% of Spartan Stores shares voting on the proposed issuance of stock to Nash Finch stockholders in the merger voted in favor. More than 98% of Nash Finch shares voting on the proposal voted in favor of the merger. Under terms of the merger agreement, each share of Nash Finch common stock was converted into 1.20 shares of Spartan Stores common stock. Former Spartan Stores shareholders own approximately 57.7% of the equity of the combined company, and former Nash Finch shareholders own approximately 42.3%. The combined company has approximately 38 million shares outstanding.
SpartanNash’s board of directors includes seven directors from Spartan Stores’ previous board and four directors from Nash Finch’s previous board.
Along with completing the merger, SpartanNash has changed its fiscal year end from the last Saturday in March to the Saturday closest to December 31. This date change results in a transition period with a 15-week third quarter this year versus a 16-week third quarter last year and a 39-week fiscal year ending Dec 28, 2013 versus a 52-week fiscal year ending March 30, 2013.
SpartanNash is a Fortune 500 company and the largest food distributor serving military commissaries and exchanges in the United States, in terms of revenue. Its core businesses include distributing food to military commissaries and exchanges and independent and corporate-owned retail stores in 44 states and the District of Columbia, Europe, Cuba, Puerto Rico, the Azores, Bahrain, and Egypt. SpartanNash operates 177 supermarkets, primarily under the banners of Family Fare Supermarkets, No Frills, Bag ‘n Save, and Econofoods.