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March 6, 2021
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Business Review Western MI
Business Review Western MI
SPARTAN GROWTH
(2007-04-05)
(wgvu) -
Privately owned GAR Felpausch Co. will sell all its stores to Spartan
Stores Inc. for $38.5 million, pending due-diligence procedures,
officials said Monday.

This is a strategic and opportunistic acquisition for our company,
Spartan spokeswoman Jeanne Norcross said.

The Grand Rapids-based grocery wholesaler and retailer will broaden its
retail portfolio with 20 grocery stores, two gas stations and three
convenience stores purchased from Hastings-based Felpausch.

Spartan [Nasdaq: SPTN] would grow its retail base by 29 percent to 88
stores. Felpausch has been a wholesale customer of Spartan's for more
than 50 years.

The transaction is expected to hike Spartan's annual retail sales by
approximately $200 million, the company said. Actual consolidated sales
will only be half as much, due to Spartan's existing distribution
relationship with Felpausch.

Marketing and other transition activities are expected to cost between
$5 million and $6 million in the first year, Norcross said, as Spartan
upgrades and promotes its new stores.

This transaction follows our successful acquisition of D&W stores last
year, Spartan President and CEO Craig Sturken said in the company's
announcement. The Felpausch stores serve many communities where we
currently have no retail presence. They also provide an outstanding
geographic fit with our current retail store footprint, while providing
expansion into central Michigan.

Felpausch operates locations throughout western and central Michigan.
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