Nash Finch Co has signed an agreement with Roundy’s Inc to acquire the net assets, including customer contracts, of its wholesale food distribution divisions in Westville IN and Lima OH, and two retail stores in Ironton and Van Wert OH, for about $225 million.
The Westville and Lima Divisions to be acquired represent approximately $1.0 billion in annual food distribution sales, serving more than 500 customers mainly in Indiana, Illinois, Ohio, and Michigan. The distribution centers will allow Nash Finch to expand merchandising programs in areas including distribution of produce and meat. No facility closures are anticipated.
This transaction is subject to customary conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and financing. Nash Finch intends to finance the acquisition with borrowings under its existing bank facility and a debt or convertible debt financing.