GRAND RAPIDS, Mich. - SpartanNash (NASDAQ:SPTN), a company specializing in food solutions, has announced the acquisition of Metcalfe's Market, a Wisconsin-based grocery chain with three stores. The transaction is set to be finalized in spring 2024, subject to standard closing conditions. SpartanNash has confirmed that all Metcalfe's Market employees will retain their jobs post-acquisition.
Metcalfe's Market, operating since 1917, is recognized for its premium food offerings, sustainability initiatives, and local product emphasis through its Food Miles program. The market's former owners, Tim and Kevin Metcalfe, descendants of the founders, are set to join SpartanNash, furthering the company's commitment to a 'People First' culture.
The acquisition will increase SpartanNash's presence in Wisconsin, bringing their total number of stores in the state to seven. SpartanNash CEO Tony Sarsam expressed his company's intention to honor Metcalfe's legacy while introducing new products and a loyalty rewards program. The Metcalfe's brand and customer experience are expected to remain unchanged.
Tim Metcalfe shared his gratitude for community support over the years and his optimism about joining SpartanNash, highlighting the shared values of quality and community focus between the two companies. Metcalfe's Market employees will continue to receive comprehensive benefits, and job seekers are encouraged to explore opportunities within the expanded network.
This strategic move by SpartanNash is part of its broader operations that include food wholesale and grocery retail, serving a variety of customers from independent grocers to U.S. military commissaries. The company operates 144 grocery stores and supports independent grocers with a suite of services, leveraging its global supply chain network. The financial terms of the acquisition have not been disclosed.
This news is based on a press release statement from SpartanNash.
InvestingPro Insights
In light of SpartanNash's (NASDAQ:SPTN) recent announcement to acquire Metcalfe's Market, investors and market watchers are closely monitoring the company's financial health and stock performance.
According to InvestingPro data, SpartanNash is currently operating with a market capitalization of approximately $645.54 million USD and a Price/Earnings (P/E) ratio of 12.17, which indicates a potentially undervalued stock when considering the adjusted P/E ratio over the last twelve months as of Q4 2023 standing at 9.76. This low earnings multiple may suggest an attractive entry point for value investors.
Despite a modest revenue growth of 0.89% over the last twelve months as of Q4 2023, SpartanNash has maintained a consistent dividend payout, increasing its dividend for 13 consecutive years and maintaining payments for 19 consecutive years. The current dividend yield stands at 4.58%, which could appeal to income-focused investors. Additionally, the company's liquid assets exceed short-term obligations, providing financial stability and the ability to meet immediate liabilities.
InvestingPro Tips highlight that SpartanNash is trading at a low revenue valuation multiple and has a PEG ratio (Price/Earnings to Growth) of 0.21, which might attract investors seeking growth at a reasonable price. Moreover, with analysts predicting profitability for the year, there is potential for positive sentiment to influence the stock's future performance.
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