Spartan Stores Completes Sale of United Wholesale Grocery Operation; Divests Remaining Convenience-Store Distribution Operation
GRAND RAPIDS, Mich.–(BUSINESS WIRE)–Jan. 27, 2004
Spartan Stores, Inc., (Nasdaq:SPTN) announced today that it has completed the sale of its United Wholesale Grocery Company’s operating assets to a privately held, Michigan-based company. The sale is expected to generate net proceeds of approximately $10 million after repayment of related operating liabilities. These proceeds will be used to reduce the Company’s outstanding borrowings. The asset sale includes a continuing supply agreement between Spartan Stores’ distribution operation and the new owner.
Craig C. Sturken, Spartan Stores’ Chairman, President and Chief Executive Officer said, “We are pleased to have completed the divestiture of the remaining piece of our non-core convenience-store distribution operation. Our strategic business plan has been to focus all efforts on our core wholesale grocery distribution and retail store operations and this transaction completes our divestiture activities.”
About Spartan Stores, Inc.
Grand Rapids, Michigan-based Spartan Stores, Inc., (Nasdaq:SPTN) is the nation’s eighth largest grocery distributor with warehouse facilities in Grand Rapids and Plymouth, Michigan. The Company distributes more than 40,000 private-label and national brand products to 330 independent grocery stores in Michigan. Spartan Stores also owns and operates 54 retail supermarkets and 21 deep-discount drug stores in Michigan and Ohio, including Ashcraft’s Markets, Family Fare Supermarkets, Glen’s Markets, Great Day Food Centers, Prevo’s Family Markets and The Pharm.
This press release contains forward-looking statements about Spartan Stores’ plans, strategies, objectives, goals, or expectations. These forward-looking statements are identifiable by words or phrases indicating that Spartan Stores or its management “expects,” “subject to adjustment” or similarly stated expectations. These forward-looking statements are subject to a number of factors that could cause actual results to differ materially. Our ability to achieve our goals of consistent and sustainable sales and earnings growth are subject to a large number of factors disclosed in the company’s previous filings. Additional information about these and other factors that may adversely affect these forward-looking statements are contained in Spartan Stores’ reports and filings with the Securities and Exchange Commission. Spartan Stores undertakes no obligation to update or revise any forward-looking statements to reflect developments or information obtained after the date of this press release.
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