Dive Brief:
- Hy-Vee announced Wednesday that it is acquiring Strack & Van Til, a 22-store grocery chain in northwest Indiana. The companies did not disclose the terms of the deal.
- Strack & Van Til will keep its name and operate as a subsidiary under Hy-Vee. Hy-Vee said it expects to finalize the acquisition in early May.
- The acquisition comes at a time when Hy-Vee is expanding its retail footprint and growing its presence in states such as Indiana.
Dive Insight:
The acquisition will bring Hy-Vee into its ninth state by adding nearly two dozen stores to the chain’s growing roster of retail locations. The grocer also has two stores slated for construction in the Indianapolis suburbs of Zionsville and Fishers, a Hy-Vee spokesperson confirmed.
Along with the Indiana debut, Hy-Vee has stores planned for Kentucky and Tennessee, which are also new states for the grocery chain. Hy-Vee confirmed in 2022 that it also plans to arrive in Alabama as part of a multi-state expansion to the Southeast.
Based in West Des Moines, Iowa, Hy-Vee currently has more than 550 locations, including grocery stores, drugstores, pharmacies, restaurants and convenience stores across Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin.
The Midwest chain recently expanded its presence in Wisconsin, bringing its store count in that state up to nine.
Hy-Vee’s Executive Chairman of the Board Randy Edeker said in the announcement that Strack & Van Til shares a common focus on “everyday value” with Hy-Vee.
“As our company continues to expand into Indiana and the Southeast region, Strack & Van Til’s customer-centric focus and company vision to ‘make lives easier’ aligns with Hy-Vee’s values and growth strategy,” Hy-Vee CEO Jeremy Gosch said in a statement.
Jeff Strack, grandson of founder Ernie Strack, will remain president of Strack & Van Til after the sale to Hy-Vee, according to a Hy-Vee spokesperson.
Hy-Vee said it is now a member of Associated Wholesale Grocers, which supplies Strack & Van Til’s stores. Hy-Vee’s existing grocery stores will continue to rely on its own supply chain facilities, which are located in Ankeny, Chariton, Cherokee and Cumming, Iowa.
Gosch said that Hy-Vee will welcome Strack & Van Til’s approximately 2,800 employees in the coming weeks.
Strack & Van Til, also known as Indiana Grocery Group, LLC, is headquartered in Highland, Indiana. For 20 years, the company was owned by wholesale cooperative Central Grocers until the Strack and Van Til families bought it back in 2017. In recent months, the chain struck up a tie-up with e-commerce provider Homesome and rolled out personalized digital circulars through partnerships with Ideal by Design House and Birdzi.
