SpartanNash, the new company formed by the $1.3 billion buyout of Nash Finch by Spartan Stores, will be based in Michigan for the long haul, according to Michigan officials.
Edina-based Nash Finch and Grand Rapids, Mich.-based Spartan Stores on Tuesday closed their deal, which had been unveiled in July. The news release announcing the deal's completion didn't mention where the new company would be based.
But the Michigan Economic Development Corp. said Wednesday that SpartanNash's headquarters will be located at Spartan Stores' current facility in Michigan. The company has been awarded a $2.75 million state grant to support the retention of 620 existing jobs and the creation of 72 new jobs, as well as to "provide flexibility" for up to 300 more jobs beyond that.
The grant is contingent upon SpartanNash staying at the Michigan location, said Kathy Fagan, a spokeswoman for the Michigan Economic Development Corp. Michigan will be the company's home base, and not just for the short term, she said. SpartanNash didn't return calls.
Both companies had been mum about the headquarters issue, saying only that each of their home bases would retain a significant amount of employees. From the get-go, it appeared logical the new company would be based in Grand Rapids, since its CEO would be Dennis Eidson, Spartan Stores' CEO.
Last week, outgoing Nash Finch Chief Financial Officer Robert Dimond said the merged company would be based in Grand Rapids at least initially, but that a long-term headquarters site was still being assessed. Nash Finch employed about 500 people at its Edina headquarters, and Dimond said a "majority" of them would stay after the merger.