C&S Wholesale Grocers Raises $400 Million for SpartanNash Acquisition

C&S Wholesale Grocers is raising $400 million from a five-year leveraged loan sale to finance its $1.77 billion acquisition of SpartanNash Co. The deal, led by Wells Fargo & Co., is part of a small number of loan sales tied to acquisitions hitting the market this month. Proceeds from the loan, along with a $2.25 billion asset-based lending revolver and a $903 million cash contribution, will fund the acquisition.

C&S Wholesale Grocers Inc. has initiated a $400 million leveraged loan sale to finance its $1.77 billion acquisition of food distributor SpartanNash Co. The deal, which began with a lender call on July 23, 2025, is expected to close by August 5, 2025 [1]. Wells Fargo & Co. is leading the transaction, which is one of a small number of loan sales tied to acquisitions that have hit the market this month [1].

The proceeds from the loan, along with a $2.25 billion five-year asset-based lending revolver and a $903 million cash contribution from owner Rick Cohen, will fund the SpartanNash acquisition. The loan sale is part of a broader trend in the leveraged loan market, which saw $45 billion in new deals on July 21, 2025, with 28 launches, the fourth-most ever according to data compiled by Bloomberg [2].

The leveraged loan market has rebounded following a slowdown in April, driven by worries about US tariff policy. The market's activity has accelerated in June and July, with July's total surpassing $100 billion, the first time that threshold has been topped since January [2]. This rebound reflects strong demand for floating-rate debt as the Federal Reserve has eased monetary policy.

Wells Fargo & Co. has been actively involved in the middle market financing landscape, collaborating with Overland Advantage to finance nine new transactions in 2025, totaling $2 billion. This partnership leverages Wells Fargo's banking products and Overland's direct lending approach to provide flexible and cost-effective financing solutions for middle market companies [3]. The cumulative value of their deals since 2024 is $4.8 billion across 16 transactions, demonstrating a strong market reach and effective penetration.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-23/grocer-c-s-kicks-off-400-million-loan-sale-for-spartannash-deal
[2] https://www.bloomberg.com/news/articles/2025-07-21/us-leveraged-loan-market-erupts-with-45-billion-of-new-deals
[3] https://www.gurufocus.com/news/2990425/wells-fargo-co-wfc-and-overland-advantage-propel-middle-market-financing-with-2-billion-in-new-transactions-wfc-stock-news