Fresh Brands Inc has signed a definitive merger agreement to be acquired by an affiliate of the Chicago IL-based grocery wholesale cooperative, Certified Grocers Midwest Inc. This transaction is valued at about $100 million, which includes assumed debt and certain other liabilities.
Under terms of the merger agreement, each outstanding share of Fresh Brands’ common stock will be converted into the right to receive $7.05 in cash. The Sheboygan WI-based grocery wholesaler and supermarket retailer currently has 4,931,934 shares of common stock outstanding.
This proposed merger is expected to be completed in the first quarter of 2006. The transaction is subject to approval by Fresh Brands’ shareholders and other customary closing conditions.