Spartan Stores agrees to sell subsidiaries
Jun 1, 2003 12:00 PM
Spartan Stores Inc has signed a definitive agreement with The H T Hackney Co, a Knoxville TN-based wholesale convenience-store distributor, to sell substantially all assets of Grand Rapids MI-based Spartan's convenience-store distribution subsidiaries L&L/Jiroch Co and J F Walker Co Inc.
These subsidiaries generated $720 million in sales for the fiscal year ended March 29, 2003, from facilities in Grand Rapids, Louisville KY, and Columbus OH. The transaction does not include Spartan's subsidiary, United Wholesale Grocery Co, a 12-location cash-and-carry convenience-store distribution operation.
Under terms of the agreement, H T Hackney and its affiliates are expected to pay Spartan about $42 million in cash and assume certain liabilities. The final purchase price will be adjusted to reflect changes in asset and liability levels pending closing. The company intends to use net proceeds from the transaction to reduce outstanding bank borrowings. It expects to complete the transaction in 45 days.
Spartan owns and operates 80 supermarkets and 21 deep-discount drug stores in Michigan and Ohio. The firm also distributes more than 40,000 private-label and national brand products to more than 330 independent grocery stores.
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