GRAND RAPIDS, Mich. Spartan Stores on Monday announced that it has entered into a purchase agreement to acquire 17 retail grocery stores, including 15 pharmacies, from VG’s Food Center and VG’s Pharmacy, a privately held Fenton, Michigan-based retail grocery operator.
“We are very enthused to bring VG’s, a premier Michigan retail grocery operator, further into the Spartan Stores’ family,” stated Craig Sturken, Spartan chairman. This transaction follows our successful acquisitions of D&W Food Centers and Felpausch Food Centers. The VG’s stores serve communities in key Michigan markets where we have no retail presence. The Van Gilder family has been one of our best and most loyal distribution customers for nearly 50 years, and we are very proud of our long-standing relationship with them.”
Spartan expects the transaction to close near the end of its fiscal 2009 third quarter. Upon completion, the transaction is expected to increase annual retail segment sales by approximately $310 million, with annual consolidated sales increasing approximately $160 million, as VG’s is an existing distribution customer of Spartan’s.
The acquisition grows Spartan’s footprint to 101 retail supermarkets. Prior to the announcement Spartan Stores owned and operated 84 retail supermarkets in Michigan, including Family Fare Supermarkets, Glen’s Markets, D&W Fresh Markets and Felpausch Food Centers.