Shopko, Pamida to Merge
GREEN BAY, Wis.-Shopko Stores and Pamida have reached a merger agreement that will create a combined retail company with about 350 locations in 22 states.
Financial details were not disclosed, and the deal is expected to close in mid-February. The combined company will use the Shopko name and will be headquartered in Green Bay. W. Paul Jones, chairman, president and CEO of Shopko, will head the new enterprise, and Pamida President and CEO John Harlow will serve on the leadership team. Harlow will also direct the process of integrating the two companies.
There will be no changes to Shopko stores, according to a joint statement. Pamida's stores will be converted into the Shopko Hometown format, with an investment of $80 million over the next 12 months.
Shopko operates 149 stores in 13 states throughout the Midwest, Mountain and Pacific Northwest regions. Pamida has 193 stores in 17 states, primarily in the Mountain, North Central and Midwest regions. Combined revenues of the two operations are about $3 billion a year.
Jones said the merger "is a great move for our businesses and our customers given our complementary strengths, store networks and consumer-centric retail models." He added that the Shopko Hometown format "is an ideal fit for the smaller communities that Pamida serves with its exceptional service and community-minded approach.