Distributors C&S Wholesale Grocers and SpartanNash Co. have struck a merger agreement valued at $1.77 billion in a deal designed to strengthen their combined combined ability to serve independent food retailers, as well as their own stores.
The companies reported the merger will enable the new entity to more efficiently serve customers and communities across the United States and make groceries more affordable for millions of Americans. The combined company will operate about 60 complementary distribution centers covering the U.S. and will serve some 10,000 independent retail locations and collectively, more than 200 corporate-run grocery stores.
When merged, the companies’ larger scale, supported by their operating capabilities will establish a more efficient supply chain and the ability to secure a better delivered cost of goods and greater promotional discounts expected to translate into better pricing for community retailers and for consumers, the merging distributors said. The stability of the combined organization will allow for improved customer service and the ability to better compete against large global food retailers operating in the U.S. the companies added.
The parties expect the transaction to close in late 2025. C&S was to acquire the stores that The Kroger Co. and Albertsons were divesting in their attempt at merger before that was abandoned because of opposition from the U.S. Federal Trade Commission and state governments.
“This is an exciting opportunity for our team members, partners and, notably, our customers,” said C&S CEO Eric Winn. “C&S and SpartanNash share many of the same values, including a strong emphasis on customers, teamwork and our communities. Together, we are uniting some of the most advanced capabilities and boldest innovations in the distribution market to better serve communities across the nation. At C&S, we have a legacy of braggingly happy customers, and our team members strive every day to take care of our customers’ stores as if they are our own. The combination of our two companies’ capabilities puts our collective customers’ stores and our own retail stores at the center of the plate, supporting their ability to thrive in a highly dynamic and competitive environment. Our customers need us more than ever, and we are building a sustainable platform for our team members to be able to support them long into the future.”
