Spartan completes acquisition of 17 supermarkets and 15 pharmacies from VG's

GRAND RAPIDS, Mich. Spartan Stores announced that it has completed the previously announced acquisition of 17 retail supermarkets and 15 pharmacies from VG’s Food Center and VG’s Pharmacy, a privately held Fenton, Michigan-based retail grocery operator and the company’s largest independent distribution customer.

Spartan said it believes the transaction will increase annual retail segment sales by approximately $300 million, with annual consolidated sales increasing approximately $150 million, as VG’s is an existing distribution customer. The acquisition is expected to be slightly dilutive to net earnings in the fiscal 2009 fourth quarter, but accretive during fiscal year 2010.

Commenting on the transaction, Spartan Stores’ president and ceo Dennis Eidson said, “We are very pleased to complete the acquisition of VG’s retail stores. This transaction provides us with the opportunity to sustain our long-term performance improvement record, capture additional operational synergies and serve communities in key Michigan markets where we had no retail presence. As we begin the integration process, we will bring our distinct and successful approach to marketing, merchandising, and category management to these markets, while preserving the long-standing and exceptional shopping experience that VG’s has delivered to its customers for many years. Our sound balance sheet and financial position has allowed us to take advantage of prudent market share expansion opportunities during this challenging economic period and further solidify our position as a leading independent grocery retailer in Michigan.”