Dive Brief:
- Coborn’s has agreed to acquire two Kessler’s Food and Grocery stores from the family that owns them, the Minnesota-based retailer announced Thursday. Terms of the deal, set to close in early April, were not disclosed.
- Coborn’s plans to continue operating the Kessler’s stores, located in Aberdeen and Miller, South Dakota, under their existing name and bring on all of the employees who work at the stores.
- Kessler’s said it decided to sell the stores to Coborn’s because it concluded that rapidly changing conditions in the retail sector would make it “increasingly difficult” for the company to remain competitive on its own.
Dive Insight:
Kessler’s described its deal with Coborn’s as the best way forward for the people who staff its two stores and the northeast South Dakota communities where it operates.
“This sale is the right fit for our family and employees,” Kessler’s fourth-generation owner, Reed Kessler, said in a statement. “Coborn’s is a respected company that shares our values, commitment to employees, and community support. We’re grateful to our customers and employees for seven decades of success and know they’re in good hands.”
Coborn’s provides the scale and resources to “help us stay cutting-edge and competitive, ensuring we remain best in class,” Kessler said in a Facebook post from the grocer’s account. The grocer’s approximately 250 employees will be able to buy shares in their new employer through Coborn’s employee stock ownership plan, Kessler wrote.
“I believe this path secures Kessler’s position as a market leader for decades to come, creates exciting new opportunities for our team, and enhances the shopping experience” for customers, Kessler said.
Coborn’s currently operates 79 stores in Minnesota, North Dakota, South Dakota, Wisconsin, Michigan and Illinois. The company’s banners include Coborn’s, Cash Wise Foods, Marketplace Foods, Hornbacher’s, Kessler’s Food and Grocery, and Sullivan’s Foods. Coborn’s is planning to open a new store in Plymouth, Minnesota, in early 2026.
“The Kessler family has run their family of stores with great care and is a highly respected retailer,” Coborn’s President and CEO Chris Coborn said in a statement. “We look forward to having the entire Kessler’s team join us and to learn more about their operations and communities.”
