Nash Finch Co., a Minneapolis-based food distributor, said Monday that a subsidiary, U Save Foods, Inc., has agreed to buy the Bag 'N Save supermarkets in Omaha and in York, Neb.
Bag 'N Save was founded as a company in 1981 but is a family-owned business with roots in the grocery business dating to the early 1940s. The transaction is expected to be completed by the second quarter of 2012.
"While the decision to sell the stores was a difficult one, we believe that there are many benefits for our employee associates, local suppliers, and the community at large," Leon Shrago, owner of Bag 'N Save, said in a statement.
He said Nash Finch is known for assisting family-owned businesses and the stores will continue to be supplied by the Nash Finch distribution center in Omaha. He said customers can expect a seamless change.
Alec Covington, Nash Finch President and CEO, said he expected to continue "the Shragos' longstanding tradition of outstanding customer service." He said he looked forward to welcoming Bag 'N Save employees to Nash Finch.