Grand Rapids, Mich.-based grocery retailer-distributor SpartanNash's acquisition of Indianapolis-based Caito Foods Service and Blue Ribbon Transport has been finalized.
Under terms of the agreement, SpartanNash acquired Caito's produce distribution and fresh-cut produce business and the newly constructed 120,000-square-foot Fresh Kitchen facility, which is designed to process and package fresh-prepared foods, as well as the logistics business of Blue Ribbon.
"Caito's service area also is complementary to our current distribution footprint, and we look forward to serving customers in new areas in addition to enhancing our offerings to existing customers," SpartanNash CEO and chairman of the board Dennis Eidson said in a news release. "This acquisition further strengthens our platform and enhances our ability to help our customers serve their consumers, benefiting our associates and the communities we serve. We look forward to leveraging our new platform with its broader customer base and geographic reach to create significant long-term value for our shareholders."
Caito Foods reported sales of more than $600 million in fiscal 2016, which ended Sept. 30.
The $217.5 million cash acquisition (plus some transaction costs), announced Nov. 4, also could be worth an additional $12.4 million to Caito Foods collectively if the business achieves certain performance targets, the companies said when they announced the deal.
SpartanNash, a Fortune 400 company whose core businesses include distributing grocery products to independent grocery retailers, national accounts, its corporate owned retail stores, and U.S. military commissaries, serves customer locations in 47 states and the District of Columbia, Europe, Cuba, Puerto Rico, Bahrain and Egypt. The company currently operates 159 supermarkets, primarily under the banners of Family Fare Supermarkets, Family Fresh Market, D&W Fresh Market and SunMart.
Acquiring Caito Foods, a family-owned operation since its founding in 1965 by brothers Philip and Joseph Caito, helps SpartanNash expand into the "fast-growing freshly prepared centerplate and side dish categories," the company said in November.
Caito Foods Service does business with grocers and foodservice operators in 22 states in the Southeast, Midwest and East regions of the U.S. The company has distribution centers in Indianapolis, as well as Newcomerstown, Ohio, and Lakeland, Fla.
Blue Ribbon Transport offers logistics services across North America.