Spartan agrees to acquire 20 stores
Mar 20, 2007 9:36 AM
Spartan Stores Inc has entered into a purchase agreement to acquire 20 retail grocery stores, two fuel centers, and three convenience stores from G&R Felpausch Co, a privately held Hastings MI-based retail grocery operator and Spartan distribution customer. Completion of the transaction is subject to certain conditions including conclusion of due diligence.
The company expects the transaction to close late in its fiscal 2008 first quarter. Upon completion, the transaction will increase annual retail segment sales by approximately $200 million, but annual consolidated sales will grow by about $100 million since Felpausch is a distribution customer. Spartanís first-year gains will be more than offset by transition expenditures of around $5.0 million to $6.0 million.
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