BYRON CENTER — A recently completed acquisition could help SpartanNash Co. (NASDAQ: SPTN) expand its presence in the food distribution space
The Byron Center-based grocery retailer and distribution firm announced it has completed its previously announced acquisition of certain assets — including distribution facilities — of Indianapolis-based Caito Food Service Inc. and its Blue Ribbon Transport business.
SpartanNash acquired the assets for $217.5 million in cash, according to regulatory documents.
“We are very pleased to complete the transaction with Caito Foods and BRT,” SpartanNash CEO and chairman of the board Dennis Eidson said in a statement. “Caito is a premier distributor with best-in-class food processing facilities, including its new Fresh Kitchen. Caito’s service area also is complementary to our current distribution footprint, and we look forward to serving customers in new areas in addition to enhancing our offerings to existing customers.”
Additionally, documents filed with the Securities Exchange Commission (SEC) note that if the assets don’t meet “certain financial targets,” SpartanNash will recoup part of its purchase price.
The deal also includes certain earn-out targets for Caito Food Service.
"This acquisition further strengthens our platform and enhances our ability to help our customers serve their consumers, benefiting our associates and the communities we serve,” Eidson said.
As MiBiz previously reported, SpartanNash was advised on the deal by Deutsche Bank (financial) and Morgan Lewis (legal).