Lund Food Holdings, Edina, Minn., said Wednesday it has agreed to acquire three Rainbow supermarkets in the Twin Cities area from Milwaukee-based Roundy’s.
Terms of the acquisition, which is expected to close in the next 60 to 90 days, were not disclosed.
The three stores are among 18 that Roundy's said it plans to divest to Supervalu and independents supplied by Supervalu, for about $65 million total.
Upon closing, the Rainbow in Woodbury, Minn., including an adjacent liquor store, and the Rainbow in Eden Prairie, Minn., including an in-store pharmacy, will be converted to Byerly’s stores. The Rainbow in Plymouth, Minn., will continue to be operated as a Rainbow for the foreseeable future, Lunds said.
All of the approximately 250 current employees at these Rainbow locations will have the opportunity to continue their employment with Lund Food Holdings, the company said.
“We’re committed to growth and development for the benefit of our team and customers in the communities we’ll be serving,” said Tres Lund, president and CEO of Lund Food Holdings. “We’re deeply excited to have the opportunity to bring our brand of quality, service and expertise to these communities.”
Extensive remodels at the Woodbury and Eden Prairie locations are planned for 2015.
Lund Food Holdings, which is celebrating its 75th anniversary this year, operates 12 Lunds, 11 Byerly's and one Lunds and Bylerly's Kitchen.
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