Jewel Foods Stores has entered into an asset purchase agreement with Central Grocers to acquire 19 Strack & Van Til stores and other certain assets. Jewel-Osco will serve as the “stalking horse bidder” in a court-supervised sale process, which means Jewel-Osco was the initial bidder with which Central Grocers chose to negotiate prior to the auction of assets. The auction is expected to commence on June 2, 2017, assuming court approval of the bidding procedures.
Jewel-Osco, a wholly-owned subsidiary of Albertsons Companies, operates 186 stores across Illinois, Indiana and Iowa, and has been a fixture among Midwest grocers since 1899 when Frank Ross and Frank Skiff launched the Jewel Tea Company, selling tea and coffee door-to-door from horse-drawn wagons. The transaction, if completed, would expand the Jewel-Osco footprint further into Indiana where they currently operate 4 stores, and build upon Strack & Van Til’s rich history of delivering quality, local products and an innovative shopping experience for their customers in the neighborhoods they serve. Jewel-Osco 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.”
Jewel-Osco 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.
The transaction is subject to customary closing conditions, including approval from the Federal Trade Commission.