Chicago’s largest grocer to buy Strack & Van Til stores

Jewel Food Stores (Jewel-Osco), a wholly-owned subsidiary of Albertsons Companies, is expanding its footprint in Indiana.



Jewel-Osco said it has entered into an asset purchase agreement with Central Grocers to acquire 19 Strack & Van Til stores and other certain assets. Strack & Van Til is owned by Central Grocers, which filed for bankruptcy protection at the beginning of May.



Jewel-Osco will serve as the "stalking horse bidder" in a court-supervised sale process. Various media reports put the sale at $100 million.



The auction is expected to get underway on June 2, 2017, assuming court approval of the bidding procedures.



Jewel-Osco operates 186 stores, primarily in Illinois and Iowa. The transaction, if completed, would expand the Jewel-Osco footprint further into Indiana, where it currently operated four stores. The retailer does not expect to close any store locations as a result of the transaction, pending the outcome of the court-supervised sale process and customary regulatory approvals. It intends to extend offers of employment to substantially all of the current store employees as part of the transaction.



"We are excited to have the opportunity to grow the Jewel-Osco brand in the Midwest and welcome the Strack & Van Til team at those 19 stores to our Jewel-Osco family," said Doug Cygan, Jewel-Osco division president. "Our two companies share a rich history of serving customers in the Midwest as well as core beliefs in working hard to serve customers and deliver value every day on the finest quality fresh foods and local products."



The transaction is subject to customary closing conditions, including approval from the Federal Trade Commission.



In related news, Central Grocers said it is continuing to evaluate proposals to acquire its state-of-the-art, one million-sq.-ft. distribution center in Joliet, Illinois, and its six additional Raceway real estate assets as it winds down its wholesale distribution operations. Central Grocers is continuing to pursue of three Ultra stores not included in the transaction. The stores are currently open.