HONOLULU — Quinn Stores Inc., the parent company of Times Supermarkets here, said last week it has signed a definitive agreement to acquire seven Star Markets locations.
Terms of the transaction, which is expected to close in early September, were not disclosed.
The merger will enable Times to expand from its base on Oahu to the islands of Maui and Kauai. Times plans to rebanner five of the Star locations under its own name — two on Oahu, two on Maui and one on Kauai; it said it expects to sell the other two Star locations on Oahu — which overlap existing Times units — to a drug store company, though no definitive agreements have been reached.
Times will also introduce its EDLP format to the Star stores, the company said.
Times was acquired by QSI in 2002 from the Teruya family. John Quinn, president and chief executive officer of QSI, told SN that Times accounts for about $250 million in annual volume, while Star does about $110 million, of which $90 million comes from the five stores it will retain.
Quinn said the Times stores will continue to be supplied by C&S Wholesale Grocers, Keene, N.H., which has distribution facilities here, while the former Star Markets will continue to be supplied by Unified Grocers, Los Angeles, which does not have local facilities. He said QSI will determine over the next year which supplier to use for all stores.
Both Times and Star operate conventional stores ranging in size from 25,000-40,000 square feet.
The Fujieki family, which opened the first Star location in 1927, decided earlier this year to leave the grocery business and felt Times provided the best future for its employees and customers, the two companies said in a joint news release.
“The agreement to sell our business to Times will ensure those loyal employees and customers who have put their trust in us for over 70 years will still have a place to go for their daily shopping,” Kari Wissman, president and CEO of Star Markets, said.
Once the acquisition is completed, Quinn said Times expects to keep just eight to 10 of the 60 administrative people working for Star.
Besides the Hawaii store, QSI has a California subsidiary called PAQ (his wife's initials), which operates 12 Food 4 Less stores and four Rancho San Miguel units in northern and central California.
