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SpartanNash Shares Pop 26% On Amazon Commercial Agreement

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SpartanNash Shares Pop 26% On Amazon Commercial Agreement

SpartanNash Company (NASDAQ: SPTN) shares jumped Friday on news of a commercial agreement with Amazon.com, Inc. (NASDAQ: AMZN).

What Happened: MIBiz reports SpartanNash entered a partnership that could see Amazon become the largest shareholder in the company.

Stock warrants were offered to Amazon subsidiary NV Holdings LLC for the right to purchase stock warrants at a price of $17.72 through Oct. 7, 2027.

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Why It’s Important: If Amazon completes its right to purchase the warrants, it could acquire 5.4 million common shares of SpartanNash. This would give Amazon.com a 15.7% stake in SpartanNash, making it the largest shareholder.

The deal comes after the two companies launched a distribution partnership in 2016 that allowed SpartanNash the ability to sell products via Amazon Prime.

SpartanNash is the fifth-largest food distributor in the United States. The company has 155 corporate-owned stores and distributes products to over 2,100 stores. SpartanNash also has 12 wholesale distribution centers and 7 military distribution centers.

Amazon purchased Whole Foods for $13.7 billion in 2017, adding the grocery retailer and its 450 stores to its umbrella.

SPTN Price Action: Shares of SpartanNash closed Friday up 26% to $21.48. Shares hit a high of $23.45 on Friday, nearly passing their 52-week high of $23.94.

 

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