C&S Wholesale Grocers to acquire SpartanNash for $1.77 billion

KEENE, N.H./GRAND RAPIDS, Mich. - C&S Wholesale Grocers, LLC has entered into a definitive agreement to acquire SpartanNash Company (NASDAQ:SPTN) for $26.90 per share in cash, representing a total consideration of $1.77 billion including assumed net debt, according to a press release issued Monday.

The purchase price represents a 52.5% premium over SpartanNash's closing price on June 20, 2025, and a 42% premium to its 30-day volume-weighted average stock price as of that date. According to InvestingPro data, SpartanNash has maintained dividend payments for 20 consecutive years, with the current dividend yield at 5%.

The boards of directors of both companies have unanimously approved the transaction, which is expected to close in late 2025, subject to SpartanNash shareholder approval and regulatory clearances.

The combined company will operate nearly 60 distribution centers across the United States, serving approximately 10,000 independent retail locations and operating more than 200 corporate-run grocery stores.

"This transaction creates the necessary scale, efficiency and purchasing power needed to enable independent retailers to compete more effectively with larger big box chains," said SpartanNash President and CEO Tony Sarsam. InvestingPro analysis shows the company operates with gross profit margins of 16.1% and maintains healthy liquidity with a current ratio of 1.66, indicating strong operational fundamentals despite industry challenges. For deeper insights into SpartanNash's financial health and valuation metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

C&S Chief Executive Officer Eric Winn stated that the merger would unite "some of the most advanced capabilities and boldest innovations in the distribution market to better serve communities across the nation."

The companies expect the increased scale to result in a more efficient supply chain and better pricing for retailers and consumers in the grocery industry, which operates on average profit margins of only 1.6%. With SpartanNash's EBITDA of $227.4 million and strong free cash flow yield, the merger could potentially improve operational efficiency in an industry known for thin margins.

SpartanNash's previously announced quarterly cash dividend of $0.22 per common share will be paid on June 30, 2025, to shareholders of record as of June 13, 2025.

Wells Fargo has provided a debt financing commitment for the transaction. Solomon Partners is serving as financial advisor to C&S, while BofA Securities is advising SpartanNash.

In other recent news, SpartanNash reported its first-quarter 2025 earnings, revealing a mixed performance. The company missed earnings per share (EPS) expectations, reporting $0.35 against a forecast of $0.45. However, it exceeded revenue projections, achieving $2.91 billion compared to the anticipated $2.87 billion. Retail segment sales saw a significant increase of 19.6%, contributing to the revenue beat, while the wholesale segment also showed strong results with nearly $2 billion in net sales. Despite these gains, SpartanNash's EPS showed a decline from $0.53 in the same quarter last year, indicating ongoing profitability challenges. BMO Capital Markets maintained its Market Perform rating on SpartanNash, with a price target of $20, acknowledging the company's strategic initiatives but expressing caution due to potential revenue and volume pressures. SpartanNash reaffirmed its full-year 2025 guidance, projecting net sales between $9.8 billion and $10 billion, with plans to open new Hispanic stores by year-end. The company remains committed to its long-term growth strategy, focusing on expanding its presence in the Hispanic and convenience store sectors.

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