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GRAND RAPIDS, Mich. -- Spartan Stores Inc., wholesaler to more than 350 retailers and operator of 68 grocery stores in the Midwest, reached agreements with G&R Felpausch Co. to purchase 25 properties -- 20 grocery stores, three convenience stores and two gas stations, reported Progressive Grocer sister publication to CSNews Online.
G&R Felpausch has been a family-owned grocer since it was founded in the 1930s, and a Spartan distribution customer for more than 50 years, the report stated. Once the deal is final, Spartan plans to upgrade stores and improve performance, and also achieve operational synergies from current operations.
The purchase will increase retail sales for Spartan by about $200 million per year, and will increase Spartan's store count by 29 percent to 88 stores, the company stated. Financial terms of the deal were not disclosed. The acquisition is expected to close by the end of the first quarter of 2008.
"Sustained profitable growth through prudent retail acquisitions is a component of our ongoing and core business strategy," said Craig Sturken, Spartan Stores' chairman, president, and CEO.
Sturken said 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."
With warehouse facilities in Grand Rapids and Plymouth, Mich., Spartan serves more than 350 independent grocery stores in Michigan, Indiana, and Ohio, and also owns and operates 68 retail supermarkets and 19 deep-discount food and drug stores in Michigan and Ohio, including Family Fare Supermarkets, Glen's Markets, D&W Fresh Markets, and The Pharm, according to Progressive Grocer.