Broker/Wholesaler Corner

C&S Wholesale Grocers moves to purchase Associated Wholesalers

Associated Wholesalers Inc. (AWI), a regional cooperative food distributor based in Robesonia, Pa., said it entered into an asset purchase agreement (APA) with Keene, N.H.-based C&S Wholesale Grocers pursuant to which C&S will acquire substantially all of AWI’s assets, including its White Rose distribution business. Under terms of the APA, C&S will serve as the “stalking horse bidder” in a court-supervised auction process. Accordingly, the APA is subject to higher and otherwise better offers, among other conditions.

“We believe that the asset purchase agreement with C&S is in the best interest of AWI and its stakeholders,” said Joyce Fasula and Mike Rothwell, chairman and vice chairman of the AWI board of directors, respectively. “After conducting a thorough process, which included the exploration of a range of alternatives and reaching out to multiple interested parties, we determined the best course of action for AWI was to enter this agreement with C&S and to undertake the court-supervised sale process.”

To facilitate the transaction process, AWI and its subsidiaries, including White Rose, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. This action is expected to provide for an orderly sale of the AWI businesses under Section 363 of the Bankruptcy Code, the company said.

“As we move through this transaction process, we will continue to focus on serving our customers,” said Matt Saunders, president and CEO of AWI. “We also intend to work closely with our suppliers and the winning bidder to help ensure that our customers continue to receive the level of service they expect.” AWI and White Rose are expected to continue operating as normal during the sale process.

“The addition of AWI and White Rose would expand C&S’s footprint and enhance our significant capabilities in servicing independent grocers,” said Rick Cohen, chairman and CEO of C&S. “AWI and White Rose have a terrific customer base, and their distribution capabilities are a natural complement to our existing portfolio. We believe we are strongly positioned to provide all of their customers with the goods and services they need to successfully run and even grow their businesses.”

Daymon Worldwide’s foundation to donate $4,000 to charities

Daymon Worldwide, a Stamford, Conn.-based global expert in consumables retailing and a private brand development pioneer, announced that its philanthropic arm, the Daymon Foundation, will donate $4,000 in grants to four associate-named charities: Voices Against Brain Cancer, Kids Against Hunger, United Way (San Antonio) and Boys and Girls Clubs of America (Rochester, N.Y.). As part of the foundation’s mission to give back to communities where associates live and work, the Daymon Foundation steering committee reviews nominations of associate fundraising efforts and periodically awards grants to those nonprofits best aligned with the foundation’s guiding principles.

“We’re thrilled to support these worthy global, national and community organizations thoughtfully selected by our associates,” said Matthew Broder, Daymon Worldwide’s vice president of corporate communications and president of the Daymon Foundation. “We look forward to continuing to recognize and support our associates’ dedication to their communities and customers through future charitable contributions.”