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Kroger's Dillons Unit Expands in Wichita With Homeland Stores Acquisition

CINCINNATI -- The Kroger Co.'s Hutchinson, Kan.-based Dillon Stores division has struck a deal with HAC, Inc., a subsidiary of Associated Wholesale Grocers, to acquire three Homeland Stores.

The Wichita, Kan.-area stores will become part of the Dillon’s unit, with 101 stores under the Dillons, Gerbes, and Baker's banners in Kansas, Missouri, and Nebraska.

Kroger said the deal will provide Wichita customers with newer, more up-to-date shopping choices, and enhanced departments such as pharmacy, Nature's Market, and expanded selections that will include up to 8,000 additional products and merchandise.

The newly acquired locations will further allow for the relocation of several smaller Dillons stores to these more modern facilities in the same neighborhoods.

"This is an exciting opportunity for us to build on our strong presence in the growing Wichita market," noted John Bays, Dillon's president. "Our customers will see immediate facility upgrades, with new amenities to meet and exceed their expectations as we relocate to these stores."

The transaction is expected to close in February 2008, and is subject to customary closing conditions. Terms of the agreement weren't disclosed.
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