MINNEAPOLIS — Nash Finch Co. here on Thursday said it has agreed to purchase three distribution centers serving military commissaries and exchanges from GSC Enterprises for $80 million in cash. The deal will allow Nash Finch to expand its military distribution network particularly in the Southern and Midwest states, officials said.
According to figures provided by GSC, the centers — located in Pensacola, Fla.; Junction City, Kan.; and San Antonio — accounted for approximately $740 million in revenue for the 12 months that ended in October. Nash Finch’s current military distribution segment produced $1.25 billion in sales last year.
Alec Covington, president and chief executive officer of Nash Finch, said the military is the company’s most consistent provider of sales and EBITDA growth and has historically provided the company’s best returns on invested capital. Plans call for Nash Finch to improve sales and profitability at the centers in part through product line enhancements and efficiencies in combination with existing Nash Finch facilities.
GSC, based in Sulphur Springs, Texas, said it would retain its convenience store and financial services business. The deal is subject to regulatory approval, and is expected to close in the first quarter.
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