SpartanNash Acquires Metcalfe's Market

Rhea-AI Summary

SpartanNash, a food solutions company, has acquired Metcalfe's Market, a three-store grocery chain in Wisconsin. The acquisition will continue employment for all Metcalfe's Market employees, maintaining the store's branding and core shopper experience. Former owners Tim and Kevin Metcalfe will join SpartanNash, expanding the company's footprint in Wisconsin to seven stores.

Insights

Market Research Analyst

The acquisition of Metcalfe's Market by SpartanNash signifies a strategic expansion in the Wisconsin market. This can potentially bolster SpartanNash's regional presence, enhance their product offerings with local and sustainable products, leading to a diversified revenue stream. By maintaining the Metcalfe's brand and experience, SpartanNash may capitalize on the established customer loyalty without risking brand dilution.

Furthermore, integrating Metcalfe's unique Food Miles program aligns with the growing consumer demand for sustainable and locally sourced products. This acquisition presents SpartanNash with an opportunity to solidify its market position against competitors, particularly in locations where consumer preferences are shifting towards community-focused and environmentally conscious shopping experiences.

Financial Analyst

From a financial perspective, the acquisition of Metcalfe's Market by SpartanNash is worth noting but the undisclosed terms of the deal limit complete analysis. However, the decision to retain all employees and merge Metcalfe's rewards with SpartanNash's loyalty programs may result in operational synergies and customer retention. The commitment to benefits for full-time employees may also result in a more motivated workforce, potentially leading to higher productivity levels.

As SpartanNash expands its footprint in Wisconsin, investors will be keen on the absorption impact on the company's balance sheet and income statement in upcoming quarters. The added store locations could enhance revenue streams but also incur additional operating expenses. The long-term success of this acquisition will hinge on the effective integration of Metcalfe's and realization of anticipated synergies.

The food solutions company has acquired the three-store Wisconsin grocer, continuing employment for all Metcalfe's Market employees

GRAND RAPIDS, Mich., April 15, 2024 /PRNewswire/ -- Food solutions company SpartanNash (the "Company") (Nasdaq: SPTN) today announced its acquisition of Metcalfe's Market, a three-store grocery chain in Wisconsin. Upon close of the sale, the Madison and Wauwatosa, Wis. locations will be continuing employment for all employees. The Metcalfe's Market storefront, branding and core shopper experience will remain in place.

Founded in 1917 by Henry and Teresa Hess, Metcalfe's Market is a community staple, specializing in premium quality foods, sustainability practices, and an extensive focus on local products featuring Metcalfe's Food Miles program. Former owners Tim and Kevin Metcalfe – the great-grandsons of Metcalfe's Market founders – will join the SpartanNash family of Associates.

"Metcalfe's Market has been a successful family-owned and operated business for four generations, and we are honored that the Metcalfe family is entrusting SpartanNash to build upon their legacy and bring new offerings to its team members and grocery shoppers," said SpartanNash CEO Tony Sarsam. "As a People First company, we welcome Tim, Kevin and the entire Metcalfe's Market team into the SpartanNash family, and we look forward to earning the loyalty of our newest store guests. As a food solutions company, we provide the ingredients for family meals and traditions – just like Metcalfe's Market has for more than 100 years."

Metcalfe's Market will expand SpartanNash's footprint in Wisconsin to seven stores. Shoppers can look forward to the same great products they enjoyed at Metcalfe's Market in addition to a wide assortment of SpartanNash private label offerings, including the Our Family^® portfolio of products. The Company will also offer its enhanced loyalty and rewards program featuring digital coupons and weekly grocery savings.

"We are incredibly grateful for the support of our communities for more than a century, and we are confident that with SpartanNash, guests at Metcalfe's Market will continue to enjoy the same high level of service, quality and variety of products they have come to expect here at Metcalfe's," said Tim Metcalfe, co-owner of Metcalfe's Market. "We are thrilled to join the SpartanNash family, and we can't wait to contribute to their People First culture. SpartanNash has the same commitment to quality and community that Metcalfe's has been known for over the past four generations."

As part of the acquisition, full-time Metcalfe's Market team members will continue to receive a benefits package featuring a variety of medical, vision and dental plans, as well as additional investments in paid time off, wellness perks, tuition reimbursement and more. Those interested in Careers for a Better Life can continue to apply for positions at all three Metcalfe's Market locations at shopmetcalfes.com and will have expanded opportunities across the SpartanNash network as well.

The transaction is expected to be completed in spring 2024, subject to customary closing conditions. Terms of the deal were not disclosed.

About SpartanNash
SpartanNash (Nasdaq: SPTN) is a food solutions company that delivers the ingredients for a better life. Committed to fostering a People First culture, the SpartanNash family of Associates is approximately 17,000 strong. SpartanNash operates two complementary business segments – food wholesale and grocery retail. Its global supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. The Company distributes products for every aisle in the grocery store, from fresh produce to household goods to its OwnBrands, which include the Our Family^® portfolio of products. On the retail side, SpartanNash operates 144 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin's Super Markets and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers. Leveraging insights and solutions across its segments, SpartanNash offers a full suite of support services for independent grocers. For more information, visit spartannash.com.

CONTACT:
Adrienne Chance 
SVP, Communications
SpartanNash
press@spartannash.com  

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SOURCE SpartanNash

FAQ

What company acquired Metcalfe's Market?

SpartanNash acquired Metcalfe's Market.

How many stores does Metcalfe's Market have?

Metcalfe's Market is a three-store grocery chain in Wisconsin.

Will Metcalfe's Market employees retain their jobs after the acquisition?

Yes, all Metcalfe's Market employees will continue employment.

Who are the former owners of Metcalfe's Market?

Tim and Kevin Metcalfe, the great-grandsons of the founders, were the former owners of Metcalfe's Market.

What benefits will full-time Metcalfe's Market team members receive after the acquisition?

Full-time team members will receive a benefits package with medical, vision, and dental plans, as well as paid time off, wellness perks, and tuition reimbursement.

When is the completion of the acquisition expected?

The transaction is expected to be completed in spring 2024, subject to customary closing conditions.