SpartanNash to acquire Caito Foods Service

Global grocery product distributor SpartanNash has signed an agreement with US-based Caito Foods Service (Caito) to acquire certain assets of the latter and Blue Ribbon Transport (BRT).

As part of the deal, SpartanNash will pay Caito and Blue Ribbon Transport approximately $217.5m in cash, reimburse Caito for certain transaction costs and provide two earn-out opportunities that have the potential to pay the sellers an additional $12.4m collectively if the business achieves certain performance targets.

SpartanNash expects to close the acquisition by next January, subject to regulatory approval and customary closing conditions.

Upon completion of the transaction, Caito and BRT will become part of SpartanNash’s food distribution segment.

SpartanNash CEO and chairman Dennis Edison said: “Caito Foods Service is a premier distributor with best-in-class food processing facilities, including its new Fresh Kitchen.

“In addition, Caito’s service area 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.

“In short, 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, as well as delivering value for shareholders.”

According to the terms of the agreement, SpartanNash will acquire Caito’s fresh cut fruits and vegetables business, as well as produce distribution business, and the newly constructed Fresh Kitchen facility that is designed to process and package freshly prepared foods, and the logistics business of BRT.

The company anticipates the acquisition will bolster its product offerings to its existing customer base by expanding into the fast-growing freshly prepared centreplate and side dish categories.