C&S Wholesale Grocers will acquire SpartanNash for $1.77 billion to form a combined company that serves up to 10,000 independent retail locations nationwide.

The purchase price is $26.90 per share of SpartanNash common stock in cash, including assumed net debt. It represents a 52.5 per cent premium over SpartanNash’s closing price on June 20 and a premium of 42 per cent to its 30-day volume-weighted average stock price.

The companies said the combined entity will operate more than 200 corporate-run grocery stores and 60 distribution centers and will serve 10,000 independent retail locations.

The larger-scale operation will enable a more efficient supply chain as well as an ability to secure the best possible cost of goods and promotional discounts.

“C&S and SpartanNash share many of the same values, including a strong emphasis on customers, teamwork and our communities,” said C&S CEO Eric Winn.

“The combination of our two companies’ capabilities puts our collective customers’ stores and our own retail stores at the center of the plate, supporting their ability to thrive in a highly dynamic and competitive environment,” he continued.

“For our customers, this transaction creates the necessary scale, efficiency and purchasing power needed to enable independent retailers to compete more effectively with larger big box chains,” added SpartanNash president and CEO Tony Sarsam.

The deal has been unanimously approved by the boards of both companies and is expected to close late this year, subject to certain customary closing conditions. Wells Fargo has provided a debt financing commitment for the transaction.

Last October, SpartanNash acquired Ohio-based supermarket chain Fresh Encounter as part of the strategy to expand its retail footprint.