US supermarket group Spartan Stores has completed the acquisition of privately-owned Michigan retailer VG’s food and pharmacy outlets.
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Spartan completed the previously announced acquisition of 17 supermarkets and 15 pharmacy’s from VG’s Food Centre and VG’s Pharmacy on Monday (29 December).
The deal is expected to increase annual retail segment sales by approximately US$300m, with annual consolidated sales increasing approximately $150m, Spartan said.
Spartan anticipates that the acquisition will be “slightly” dilutive to net earnings in the fiscal 2009 fourth quarter, but accretive during fiscal 2010.
“This transaction provides us with the opportunity to sustain our long-term performance improvement record, capture additional operational synergies and serve communities in key Michigan markets where we had no retail presence,” Spartan president and CEO Dennis Eidson said.
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By GlobalData“Our sound balance sheet and financial position has allowed us to take advantage of prudent market share expansion opportunities during this challenging economic period and further solidify our position as a leading independent grocery retailer in Michigan,” he added.
