Certified Grocers to get $115 million credit for Fresh Brands buy

By Sara Rosenberg

New York, Dec. 6 - Certified Grocers Midwest Inc. received a commitment for a $115 million credit facility that will be used to fund the acquisition of Fresh Brands Inc. and provide for the ongoing operation of the businesses, company officials said in a conference call Tuesday.

JPMorgan is the lead bank on the loan.

Under the acquisition agreement, Certified Grocers will purchase Fresh Brands for about $100 million, which includes assumed debt, other liabilities and the conversion of each outstanding Fresh Brands' share into the right to receive $7.05 in cash.

The transaction, which is expected to be completed in the first quarter of 2006, is subject to Fresh Brands' shareholder approval but not financing.

Certified Grocers is a Chicago-based grocery wholesale cooperative. Fresh Brands is a Sheboygan, Wis.-based supermarket retailer and grocery wholesaler.

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