Hy-Vee to acquire Strack & Van Til grocery chain
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Iowa-based Hy-Vee Inc. is continuing its growth plans in Indiana. The grocery retailer announced Wednesday it plans to acquire the Strack & Van Til Food Market chain, headquartered in the northwest Indiana town of Highland.
Hy-Vee is not disclosing the purchase price for the acquisition, but said the deal would add 22 stores to its more than 550 retail business units, which includes grocery stores, drugstores, pharmacies, restaurants and convenience stores.
The history of Strack & Van Til dates back to 1929. Ernie Strack and Nick Van Til operated their own separate grocery stores in northwest Indiana for decades before deciding to join forces and create Strack & Van Til in 1959.
When the acquisition is complete, Hy-Vee said Strack & Van Til will operate as a subsidiary, maintaining its brand name.
“As Northwest Indiana’s No. 1 grocery store, we know Hy-Vee is the perfect partner,” Jeff Strack, president and CEO of Strack & Van Til, said in a news release. “With our combined focus on providing excellent customer service, taking care of our employees and giving back to our local communities, we believe this acquisition is a win-win for both our associates and our company.”
Strack & Van Til is currently operated by Indiana Grocery Group, which acquired the stores in 2017 in a deal valued at $91.3 million. The acquisition was made after the grocery retailer’s previous parent company, Illinois-based Central Grocers Inc., filed for Chapter 11 bankruptcy.
Hy-Vee CEO Jeremy Gosch said the company looks forward to welcoming Strack & Van Til’s 2,800 employees, and a spokesperson added in an email to Inside INdiana Business that Jeff Strack and his management team will remain in place.
“Associates will continue to provide an outstanding shopping experience and be involved in local communities as they are today,” the spokesperson said. “Being part of a larger company will offer additional support to Strack & Van Til stores and its associates by potentially offering more resources, products and services in the future.”
The acquisition is expected to be finalized in early May. Hy-Vee said with the deal, it is now a member of Associated Wholesale Grocers, which supplies Strack & Van Til’s stores in northwest Indiana.
Hy-Vee is also still planning to open new stores under its own brand name in central Indiana. Plans for stores in Zionsville and Fishers were announced in 2022.