US grocery distributor Spartan Stores has announced that, after an extensive process of analysing and exploring strategic alternatives for enhancing shareholder value, its board of directors has directed management to continue to implement its present strategic plan.
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Spartan’s strategic review process began in December 2004, when the board of directors authorised management to assess and compare alternative strategies to that of remaining independent and proceeding with the execution of the management’s existing business plan, and to engage an investment banking firm to advise and assist in the process.
During a nine-month period, assisted by investment banking firm Bear, Stearns & Co and with the oversight of the board of directors and its governance committee, Spartan management identified, explored, and evaluated its alternatives. The strategic alternatives explored included a potential sale of the company to a strategic or financial buyer and a potential acquisition by the company of a group of retail stores.
“Spartan’s board of directors unanimously voted to conclude the formal process of exploring strategic alternatives. The board of directors determined that it believes that, at this time, it will be in the best interest of the company and its shareholders for Spartan to continue its present strategic course and fully focus the efforts of management on successfully implementing the company’s plan,” the company said.
The company’s current business plan is to pursue retail and distribution sales and earnings growth through improving category management, new store construction and expansions, enhancing retail sales with new fuel centres and pharmacies, expanding its distribution customer base and pursuing opportunistic acquisitions of retail stores owned by existing distribution customers and other operators that fill in the company’s geographic markets.
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By GlobalData
