Shopko and Pamida have announced plans to merge, ultimately creating a retail company with nearly 350 stores in 22 states.

The combined organization will focus on serving smaller and rural communities. New store growth is expected in the second half of 2012 and beyond. 

Financial details were not disclosed Wednesday. The merger is expected to become final in mid-February.

According to a press release, there will be no change to Shopko's stores, and about $80 million will be invested over the next year to convert most of the Pamida stores into the Shopko Hometown store concept and brand.