The structure of the “transformational” merger last year that created SpartanNash Inc. set the Byron Center-based company on a course to take advantage of the growing consolidation trend in the supermarket industry.
Set up as a $1.3 billion all-stock transaction between Spartan Stores Inc. and Minneapolis-based Nash Finch Co., the merger positioned SpartanNash with consolidated indebtedness of around $600 million at the time of the close on Nov. 19, according to filings.
Going into the process, it was important for SpartanNash not to wind up as an overleveraged company that would be unable to seek out future deals and invest in growth, said President and CEO Dennis Eidson. The all-stock merger offered “the most efficient, cost-saving model to combine the two companies,” he said.
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