MN Officially Loses One Of Its Fortune 500 Cos.
The headquarters of a company formed by the merger of Nash Finch Company and Spartan Stores has finally been revealed—and it’s not in Minnesota.
Grand Rapids, Michigan-based grocery distributor and retailer Spartan Stores said in July that it planned to merge with Edina-based Nash Finch, one of Minnesota’s 20 largest public companies and one of 19 Fortune 500 companies that called the state home.
The $1.3 billion deal closed earlier this week, and the combined entity has taken on the name “SpartanNash Company.”
Nash Finch distributes food to conventional supermarkets and military commissaries, and its sales totaled $4.8 billion at the end of its most recent fiscal year. When the companies announced their merger plans in July, it remained unclear where the combined company would officially be headquartered, and they did not provide details regarding how Nash Finch’s 7,500 employees would be affected.
It appeared likely, however, that the company would call Michigan home, as its new board makeup is weighted heavily toward former Spartan Stores leaders, which outnumber former Nash Finch directors seven to four.
SpartanNash officially announced Thursday that its corporate headquarters will be located in Grand Rapids, Michigan. The company said it’s receiving a $2.75 million “performance-based” economic development grant in return for retaining 620 existing jobs and creating 72 new jobs. In addition to the economic incentive, the company said it picked Michigan due to “the positive business climate taking hold in Michigan, including a more favorable tax environment, and the quality of life Michigan provides for its associates.”
The company said it “will retain a strong regional presence in Minneapolis” but didn’t specify whether there will be job cuts in Minnesota. A Thursday call to a company spokesperson seeking additional information on the impact on Minnesota’s work force was not immediately returned.
A company official, however, recently told the Star Tribune that the “majority” of the 500 employees at Nash Finch’s Edina office will remain there.