SpartanNash to Acquire Fresh Encounter
Food solutions company SpartanNash has revealed its pending acquisition of Fresh Encounter Inc. (FEI), a 49-store supermarket chain with locations in Ohio, Indiana and Kentucky. Owned by third-generation grocers Michael Needler Jr. and Julie Anderson, Findlay, Ohio-based FEI has been a food distribution customer of SpartanNash for 58 years. SpartanNash will continue to employ FEI’s 2,500 employees.
“Fresh Encounter has been a successful family-owned and -operated business for decades, and we are proud to continue this legacy,” noted SpartanNash CEO Tony Sarsam. “This acquisition is an exciting milestone in our company’s strategic growth plans. Not only will we welcome 2,500 new associates to the SpartanNash family, we will also begin serving shoppers in Kentucky and grow our existing footprint across Ohio and Indiana. Retail is a critical component of our business model and long-term strategic plan, as we meet consumer needs and leverage insights from our stores to continuously innovate our products and operations across our wholesale business.”
The acquisition, which grows SpartanNash’s retail footprint by 33%, is the company’s second retail acquisition of 2024, following the purchase of Metcalfe’s Market this past April. The FEI deal is consistent with SpartanNash’s strategy and will contribute toward the growth and earnings goals shared in its 2025 long-term plan, according to Sarsam.
“We are proud of the business our family has built and look forward to advancing our relationship with SpartanNash,” said Needler. “As their customer, we have seen firsthand the People First culture at SpartanNash, and we appreciate the career opportunities and growth this will unlock for Fresh Encounter team members.”
FEI operates stores under the Community Markets, Remke Markets, Chief Markets and Needler’s Fresh Market banners. The transaction is expected to close in late November, subject to customary closing conditions. Terms of the deal weren’t disclosed.
New York-based Solomon Partners, which is serving as the exclusive financial advisor to Fresh Encounter, said in a statement: “We are very proud of our work together on this important transaction with CEO Michael Needler Jr. and the exceptional Fresh Encounter team, whose 2,500 employees have helped the company serve as a pillar of dozens of Midwest communities for over 50 years. We are confident that SpartanNash will use its scale and extensive capabilities to honor Fresh Encounter’s longstanding commitment to its team, customers and communities.”
With 17,500 associates, Grand Rapids, Mich. based SpartanNash operates two complementary business segments: food wholesale and grocery retail. Its global supply chain network serves wholesale customers that include independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. On the retail side, SpartanNash operates 147 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin's Super Markets, and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers. The company is No. 45 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. SpartanNash is also among PG’s 2024 10 Most Sustainable Grocers.
