Northeast Cooperatives Members Approve UNFI Deal
Published: Tuesday, December 17, 2002
Members of the Brattleboro, Vt.-based Northeast Cooperatives have approved a deal to “merge” with Dayville, Conn.-based United Natural Foods Inc. (Nasdaq: UNFI) for yet-undisclosed terms. Approximately 96 percent of votes cast at a special meeting on the deal were in favor of the merger, according to a Dec. 17 announcement. In October, the cooperatives' board voted unanimously in favor of the deal.
According to UNFI, Northeast Cooperatives saw sales of approximately $120 million for the trailing 12 months through mid-October this year. In October, analysts Carole Buyers and Edward Aaron speculated that the terms of the deal were favorable for UNFI and that UNFI would gain new accounts and economies of scale in the Northeast and Midwest in what would be a “highly synergistic” arrangement (see United Natural Foods to “Merge” with Northeast Cooperatives, LOHAS Journal Weekly, Oct. 24, 2002). Buyers and Aaron are Denver-based analysts for Toronto, Ontario-based investment banking company RBC Capital Markets
Northeast Cooperatives distributes to the Northeast and Midwest regions and sells more than 14,000 products to more than 2,800 customers; UNFI carries more than 30,000 products distributed to more than 10,000 customers nationwide. UNFI expects the deal to close on Dec. 31, 2002.