Jewel Foods Stores has entered into an asset purchase agreement with Central Grocers, Inc. 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 the chain currently operates four 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.
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.