LOCAL

St. Cloud-based grocer Coborn's to acquire Kessler's Food and Grocery in South Dakota

Portrait of Teagan King Teagan King
St. Cloud Times
  • Coborn's, Inc. will acquire two Kessler's Food and Grocery stores in Aberdeen and Miller, South Dakota.
  • The acquisition will mark Coborn's' expansion to a total of four locations in South Dakota.

Coborn's, Inc. will be acquiring two grocery stores in South Dakota this month, the St. Cloud-based grocery chain announced Thursday.

After 86 years as a family-owned business, the Kessler's Food and Grocery in Aberdeen and Kessler's Food and Fuel in Miller will become part of the Coborn's company when the sale closes this month, according to a press release about the acquisition.

St. Cloud-based Coborn's is acquiring two grocery stores in South Dakota.

"The Kessler family has run their family of stores with great care and is a highly respected retailer," Chris Coborn, Chairman, President and CEO of Coborn’s, said in the release. "We look forward to having the entire Kessler’s team join us and to learn more about their operations and communities."

The two Kessler stores will continue to operate under the Kessler's Food and Grocery name after the deal takes effect. Coborn's will also hire all of the approximately 250 people employed across the two locations.

The Kessler family decided to sell the business to help keep the stores competitive in the future, current owner Reed Kessler said in a note shared in Facebook. The two families have known each other for many years, he said, and Coborn's resources as a larger chain will be helpful.

"This has been one of the toughest decisions I've ever had to make, but at its core, the decision is simple ... The retail landscape is changing rapidly, and as a small organization, it would be increasingly difficult for Kessler's to remain competitive long term," Kessler said in the Facebook post.

The deal will bring Coborn's to a total of four locations in South Dakota, with two existing locations in Huron and Mitchell.

With the two new South Dakota stores and an additional location in Plymouth next year, Coborn's will soon reach a total of 80 locations across six states.