01:55 PM EDT, 06/23/2025 (MT Newswires) -- SpartanNash's ( SPTN ) shares soared intraday Monday after the food distributor said it will be acquired by C&S Wholesale Grocers for $1.77 billion, including debt.

C&S will pay $26.90 per SpartanNash ( SPTN ) common share in cash, representing about 53% premium over the latter's closing share price on Friday, according to a joint statement. The transaction, which requires approvals from regulators and SpartanNash's ( SPTN ) shareholders, is expected to complete in late 2025.

The two companies, which serve grocers and independent retailers, will combine to operate nearly 60 distribution centers in the US and serve close to 10,000 independent retail locations. Shares of SpartanNash ( SPTN ) were up 50% after midday trading.

"This transaction creates the necessary scale, efficiency and purchasing power needed to enable independent retailers to compete more effectively with larger big box chains," SpartanNash ( SPTN ) Chief Executive Tony Sarsam said.

SpartanNash ( SPTN ) will still pay a previously-announced quarterly cash dividend of $0.22 a share on June 30 to shareholders of record as of June 13.

"The stability of the combined organization will allow the combined company and its customers to better compete against various extremely large global grocers in the US food-at-home space, a more than $1 trillion annual industry," the statement said.

Last month, SpartanNash ( SPTN ) said its adjusted earnings fell to $0.35 a share for the fiscal first quarter from $0.53 a year earlier. Sales rose 3.7% year on year to $2.91 billion, but were weighed down by weakness in the wholesale segment. The company affirmed its full-year outlook.

"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," C&S CEO Eric Winn said.

Price: 26.53, Change: +8.89, Percent Change: +50.37