Two Rival Food Distributors Propose $1-Billion Merger
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OKLAHOMA CITY — Two food-distribution rivals have agreed to merge in a $1-billion deal that would create the nation’s leading supplier to grocery stores and supermarkets.
The announcement Wednesday that Fleming Cos. is buying cross-town competitor Scrivner Inc. marks the latest combination in a business that has been consolidating for some time.
“This is the type of opportunity that comes up in this business every 10 or 20 years--where the size, location and price were exactly right,” said Robert E. Stauth, Fleming’s chairman and chief executive.
Under the terms of the deal, Fleming would purchase Scrivner’s stock for $1.085 billion in cash and keep the Fleming name.
If approved by shareholders and regulators, the merger will generate combined sales revenue of about $19 billion, making Fleming the nation’s largest food distributor. SuperValu Inc. of Eden Prairie, Minn., is presently No. 1, with revenue of slightly less than $16 billion in 1993.
Stauth, speaking in a telephone news conference, said it would be premature to say how the acquisition would affect the number of employees.
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