SpartanNash to acquire Fresh Encounter, add 49 stores to footprint
SpartanNash has plans to acquire another Midwestern grocery chain, which will grow its retail footprint by 33%.
The Grand Rapids, Mich.-based food solutions company has announced the acquisition of Fresh Encounter Inc. (FEI), a 49-store supermarket chain serving Ohio, Indiana and Kentucky. Owned by third-generation grocers Michael Needler Jr. and Julie Anderson, FEI has been a food distribution customer of SpartanNash for 58 years.
FEI operates under the retail store banners Community Markets, Remke Markets, Chief Markets and Needler's Fresh Market. The transaction is expected to close in late November, subject to customary closing conditions. Terms of the deal were not disclosed.
The deal marks the second retail acquisition for SpartanNash this year, following the April addition of Metcalfe's Market, a three-store grocery chain in Wisconsin.
"Fresh Encounter has been a successful family-owned and operated business for decades, and we are proud to continue this legacy," said SpartanNash CEO Tony Sarsam. "This acquisition is an exciting milestone in our Company's strategic growth plans. Not only will we welcome 2,500 new Associates to the SpartanNash family, we will also begin serving shoppers in Kentucky and grow our existing footprint across Ohio and Indiana. Retail is a critical component of our business model and long-term strategic plan, as we meet consumer needs and leverage insights from our stores to continuously innovate our products and operations across our wholesale business."
Acquiring FEI and Metcalfe’s Market are just the latest expansion moves for SpartanNash. Last January, the company acquired independent wholesaler Great Lake Foods, and in 2022, SpartanNash purchased Shop-N-Save Food Centers, a three-store chain serving northern Michigan, converting the stores to its Family Fare banner.
"We are proud of the business our family has built and look forward to advancing our relationship with SpartanNash," said FEI CEO Needler. "As their customer, we have seen firsthand the People First culture at SpartanNash, and we appreciate the career opportunities and growth this will unlock for Fresh Encounter team members."
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SpartanNash operates 147 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.
