Nash Finch Expands Family Fresh Stores
The wholesale and food distributor, Nash Finch Company (NAFC), has added another Family Fresh Market store to its portfolio. The store, situated at South Minnesota Avenue in St. Peter, will be the fifth Family Fresh Market store.
Through the new store Nash Finch will distribute high-quality perishables, natural and organic products, and service meat, seafood and bakery products.
The banner was debuted by Nash Finch in 2008 in Hudson, WI with the conversion of a former Econofoods Store. Later, the company added another store in New Richmond, WI.
Of late, Nash Finch has been extensively expanding its reach throughout the U.S. and Canada through long-term agreements and strategic partnerships. It acquired two supermarkets in North Dakota to bolster its presence there. In 2013, it entered into an agreement with Dollar Tree Inc. (DLTR) to supply food items to its stores in the Minnesota region.
We believe that the company’s aggressive store expansion plans signify that its newly renovated stores with fresh assortment of fresh-from-farm food items are gaining popularity.
In Jul 2013, NAFC entered into a $1.3 billion definitive merger agreement with leading grocery distributor Spartan Stores Inc. (SPTN). The agreement will close by the end of calendar 2013. The merger is expected to generate $50 million annual cost synergies and involve a one-time integration cost of $26 million within three years.
The merger is of great interest to the investors as the combined entity will form a leading wholesale and food distributor boasting 22 distribution centers covering 37 states and 177 retail stores. Also, Nash Finch will be able to expand in Michigan, Indiana and Ohio.
Moreover, the new entity is expected to earn about $7.5 billion in sales and will command a strong portfolio of private brands like Spartan Stores’ Spartan and Nash Finch’s Our Family among many others.
Currently, Nash Finch, which competes with Supervalu Inc. (SVU), carries a Zacks Rank #3 (Hold).
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