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Spartan Stores and Nash Finch officially became one company SpartanNash on Tuesday, Nov. 19. This is the company's new logo.

(Courtesy image)

UPDATE: SpartanNash to locate Fortune 500 headquarters, add jobs in West Michigan

BYRON TOWNSHIP, MI -- The new company that combines the assets of Spartan Stores, and Nash Finch Company will use the corporate name of SpartanNash Company, the Byron Township grocer announced this morning.

The official name change to SpartanNash is 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 today.

"This merger brings together two highly complementary organizations to form a leader in the grocery wholesale, retail and military commissary and exchange channels," said CEO Dennis Eidson, in a statement.

Eidson praised shareholders, employees, customers and suppliers for their support in completing the merger of the companies that gave Spartan Stores shareholders a majority stake in the new company that has operations in 37 states.

"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," Eidson said.

Spartan Stores and Nash Finch shareholders approved the merger during separate shareholder meetings held yesterday.

Over 99 percent of Spartan Stores shares voting on the proposed issuance of stock to Nash Finch stockholders in the merger voted in favor, while more than 98 percent of Nash Finch shares voting on the proposal voted in favor of the merger.

Under the 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 about 57.7 percent of the equity of the combined company and former Nash Finch shareholders own approximately 42.3 percent. The combined company has about 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. In addition to Craig Sturken, who will serve as chairman of the Board of Directors and Eidson, the other members of the Board of Directors include: M. Shan Atkins, Frank M. Gambino, Yvonne R. Jackson, Elizabeth A. Nickels and Timothy J. O'Donovan, former members of the board of directors of Spartan Stores and William R. Voss, Mickey P. Foret, Douglas A. Hacker and Hawthorne L. Proctor, former members of the board of directors of Nash Finch.

Along with completing the merger, SpartanNash has changed its fiscal year end from the last Saturday in March to the Saturday closest to Dec. 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. Approximately six weeks of Nash Finch's sales and earnings contributions will be included in Spartan's third quarter and fiscal year results.

SpartanNash expects the cost of bringing together the companies will cost about $20 million, $35 million and $52 million in fiscal years 2014, 2015 and 2016, respectively, according to the release.

Integration and transaction closing related costs of about $17 million to $18 million will be recorded in the quarter that ends Dec. 28. Integration costs of $10 million to $11 million, $4 million to $5 million and $1 million to $2 million are expected to be incurred in fiscal years 2014, 2015 and 2016, respectively.

The transaction is expected to be accretive to earnings per share, excluding the one-time integration and transaction costs, in fiscal 2014 which will end on January 3, 2015. The combined company also expects to consistently continue to return value to shareholders through a dividend, which will initially be set at 48 cents per share on an annualized basis.