Kroger To Buy Hiller's Markets; It's 'A Merger Of Values', CEO Jim Hiller Says

SOUTHFIELD (WWJ) - A big business deal affects grocery shoppers in Southeast Michigan.

Kroger is buying all seven Hiller's Markets locations: Ann Arbor, Northville, Plymouth, South Lyon, West Bloomfield, and two in Commerce Township.

What was formerly a popular metro Detroit-based grocery chain a will become part of Kroger's Michigan division.

Speaking live with Hiller's CEO Jim Hiller after the announcement Friday, WWJ's Jackie Paige asked, "What happened?"

"Well, I think it's not 'what happened' ... I think it was kind of a merger of values," Hiller said. "As I looked to the future of the supermarket business, I think it belongs more to Kroger than it does to companies of my size.

"And as we evaluated potential acquisitions, or even mergers, what we found is that the fundamental values that Krogers embraces are identical to ours," Hiller said. "They are very involved in communities, they are extremely charitable. At every possible point they matched up."

Total, Hiller said, his company currently employs more than 800 people.

Kroger will be looking for people to work in those new locations — including current Hiller's employees, who will have to apply for jobs.

Hiller said Kroger is "very encouraged" about hiring many Hiller's employees.

"We're well aware that the reason Hiller's was such a good place was not because of the Hillers. It was because of all of the people who worked for us," Hiller said. "And Krogers is endeavoring to interview and hopefully hire many, many of our employees."

Asked if this move was a result of any financial problems, Hiller said there were "no issues at all."

"This was a longer-term decision, trying to find a place that would mirror our values and provide us with a legacy in this community," Hiller said. "This was very much of a family decision."

Hiller said, as part of the deal, Kroger has committed to stocking Michigan-made products — something for which Hiller's Markets has been known.

Ted Handelsman, President of the Better Health Markets, is disappointed that Hiller's acquisition means there's one less independent Michigan-based company servicing Michigan shoppers.

"Ya know, it's imperative — and Jim, in his ads and I think in his philosophy — always promoted, hey, we're Michigan, and we're supporting you, and we are you, and we're hoping for your support, too," Handelsman said.

Handelsman believes because of the consolidation in the market place, certain companies are getting squeezed by larger businesses.

The sale is expected to close in July. Terms of the agreement, including how much Kroger is paying for Hiller's, will not be disclosed.

Kroger's currently operates 123 stores and 64 fuel centers in Michigan.