St. Louis-based grocery chain will acquire Wisconsin-based Festival Foods

A Missouri-based grocery chain is purchasing Wisconsin-based Festival Foods, which has long branded itself as family and employee-owned.

1939 Group, a holding company that is owned by the family that owns St. Louis-based Schnuck Markets, has an agreement to purchase 100 percent of the parent company of Festival Foods and Hometown Grocers, Schnuck Markets announced Tuesday. The deal includes shares included in an employee stock ownership plan.

The 51 grocery stores throughout Wisconsin include 42 Festival Foods locations and nine Hometown Grocers locations. The company anticipates the sale will close after October. 

Upon completion of the purchase, the grocery chains will maintain their existing corporate headquarters and operate as separate, sister companies, according to the announcement. 

Festival Foods and Hometown Grocers have offices in Onalaska and Green Bay. The 1939 Group also plans to maintain the stores’ existing branding.

In a statement, Mark Skogen, CEO of Festival Foods and Hometown Grocers, said it has been “a privilege to serve Wisconsin communities” and continue a legacy his grandparents started in 1946. 

“Our focus has always been on treating every customer like a guest, supporting the growth of our associates who make that experience possible and giving back to the communities we serve,” Skogen said. “With Schnucks’ shared commitment to nourishing lives, this transition will help expand our impact and continue our tradition of community support across the Midwest.”

Todd Schnuck, CEO of Schnuck Markets, said in a statement that his family “is honored to be entrusted” to continue serving Wisconsin communities.

“Schnucks, Skogen’s Festival Foods and Hometown Grocers share a strikingly similar set of core values, tracing our success to decades of consistently focusing on the communities we serve, the values we share and the ongoing quest for excellence in grocery retail,” he said. “With this combination, we’re welcoming more than 8,000 associates to our family, unifying two family legacies and redefining what it means to be a regional grocer.”

The purchase will expand Schnuck family’s grocery footprint to 164 stores in Missouri, Illinois, Indiana and Wisconsin, according to the announcement.