SpartanNash Acquiring Fresh Encounter Inc., Growing Retail Footprint by 33%

Rhea-AI Summary

SpartanNash (Nasdaq: SPTN) has announced the acquisition of Fresh Encounter Inc. (FEI), a 49-store supermarket chain operating in Ohio, Indiana, and Kentucky. This acquisition expands SpartanNash's retail footprint by 33% and marks the company's second retail acquisition in 2024. FEI, a long-time SpartanNash customer for 58 years, will bring 2,500 new team members to the SpartanNash family.

The deal aligns with SpartanNash's strategic growth plans and is expected to contribute to the company's 2025 long-term goals. FEI operates under various retail banners including Community Markets, Remke Markets, Chief Markets, and Needler's Fresh Market. The transaction is set to close in late November, subject to customary conditions. Financial terms were not disclosed.

Positive

• Expands retail footprint by 33%, entering Kentucky market and growing presence in Ohio and Indiana
• Adds 49 stores to SpartanNash's retail portfolio
• Acquisition aligns with company's strategic growth plans and 2025 long-term goals
• Integrates 2,500 new team members into SpartanNash's workforce

Negative

• None.

News Market Reaction

+0.51%

1 alert

+0.51% News Effect

On the day this news was published, SPTN gained 0.51%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

The 49-store chain with locations in Ohio, Indiana and Kentucky has been a SpartanNash independent grocer customer for 58 years

GRAND RAPIDS, Mich., Oct. 14, 2024 /PRNewswire/ -- Food solutions company SpartanNash (the "Company") (Nasdaq: SPTN) today announced its acquisition of Fresh Encounter Inc. ("FEI"), a 49-store supermarket chain serving Ohio, Indiana and Kentucky. Owned by third-generation grocers Michael Needler Jr. and Julie Anderson, FEI has been a food distribution customer of SpartanNash for 58 years. SpartanNash will continue employment for FEI's 2,500 team members.

"Fresh Encounter has been a successful family-owned and operated business for decades, and we are proud to continue this legacy," said SpartanNash CEO Tony Sarsam. "This acquisition is an exciting milestone in our Company's strategic growth plans. Not only will we welcome 2,500 new Associates to the SpartanNash family, we will also begin serving shoppers in Kentucky and grow our existing footprint across Ohio and Indiana. Retail is a critical component of our business model and long-term strategic plan, as we meet consumer needs and leverage insights from our stores to continuously innovate our products and operations across our wholesale business."   

The FEI acquisition expands SpartanNash's retail footprint by 33% and is the Company's second retail acquisition in 2024, following the addition of Metcalfe's Market in April. This acquisition is consistent with SpartanNash's strategy and will contribute toward the growth and earnings goals shared in the Company's 2025 long-term plan, Sarsam added.

"We are proud of the business our family has built and look forward to advancing our relationship with SpartanNash," said FEI CEO Needler. "As their customer, we have seen firsthand the People First culture at SpartanNash, and we appreciate the career opportunities and growth this will unlock for Fresh Encounter team members."  

FEI operates under the retail store banners Community Markets, Remke Markets, Chief Markets and Needler's Fresh Market. The transaction is expected to close in late November, subject to customary closing conditions. Terms of the deal were not disclosed.

About SpartanNash
SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. Committed to fostering a People First culture, the SpartanNash family of Associates is 17,500 and growing. SpartanNash operates two complementary business segments – food wholesale and grocery retail. Its global supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. The Company distributes products for every aisle in the grocery store, from fresh produce to household goods to its OwnBrands, which include the Our Family^® portfolio of products. On the retail side, SpartanNash operates 147 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin's Super Markets and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers. Leveraging insights and solutions across its segments, SpartanNash offers a full suite of support services for independent grocers. For more information, visit spartannash.com.

PRESS CONTACT:
Adrienne Chance 
SVP, Chief Communications Officer
SpartanNash
press@spartannash.com  

INVESTOR CONTACT:
Kayleigh Campbell
Head of Investor Relations
kayleigh.campbell@spartannash.com

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SOURCE SpartanNash

FAQ

How many stores is SpartanNash acquiring from Fresh Encounter Inc. (FEI)?

SpartanNash is acquiring 49 stores from Fresh Encounter Inc. (FEI).

In which states does Fresh Encounter Inc. (FEI) operate its stores?

Fresh Encounter Inc. (FEI) operates stores in Ohio, Indiana, and Kentucky.

How long has Fresh Encounter Inc. (FEI) been a customer of SpartanNash?

Fresh Encounter Inc. (FEI) has been a food distribution customer of SpartanNash for 58 years.

When is the acquisition of Fresh Encounter Inc. (FEI) by SpartanNash (SPTN) expected to close?

The acquisition is expected to close in late November, subject to customary closing conditions.

By what percentage will SpartanNash's retail footprint expand with the Fresh Encounter Inc. (FEI) acquisition?

SpartanNash's retail footprint will expand by 33% with the acquisition of Fresh Encounter Inc. (FEI).