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Members-owned grocery wholesaler Central Grocers Inc. has entered an agreement to purchase the grocery distribution business of Chicago-based Dearborn Wholesale Grocers LP.
The transaction is expected to strengthen Joliet, Ill.-based Central Grocers’ ability to supply food products to more than 400 independent grocery retailers in Illinois, Indiana, Iowa, Michigan and Wisconsin.
Founded in 1917, Central – exclusive distributor of the Centrella brand – has grown to be the seventh largest grocery cooperative in the United States.
“Our purchase of the Dearborn grocery distribution business, with its long heritage of trusted customer service, will expand our ability to continue delivering quality goods at the lowest wholesale costs to grocery retailers,” said James Denges, Central’s president. “We’re working closely with Dearborn Wholesale to ensure a smooth transition and that service needs are addressed for all customers.”
Dearborn plans to hold on to its five “cash-and-carry” wholesale grocery branches and continue to operate them under the Dearborn name.