Folks who have shopped at Star Markets in Hawai'i for generations will find something different at the company's seven locations in the coming months: A Times Supermarkets logo over the front entrance.

QSI Inc., the parent of Times Supermarkets, announced yesterday that the company has signed an agreement to acquire all seven Star Market stores on O'ahu, Maui and Kaua'i. The deal is expected to close sometime in September. The financial terms of the agreement were not disclosed.

The acquisition will give Times a presence on the Neighbor Islands for the first time, and expand its share in the Hawai'i market dominated by Foodland and Safeway.

The deal will give Times 19 stores and put it on par with Safeway, which has about 20 stores statewide. Foodland leads the state with 30 locations.

"Today, we are combining two longtime kama'aina companies to create a powerful new brand in the local grocery industry," said John Quint, president and chief executive officer of QSI Inc., a subsidiary of Stockton, Calif.-based PAQ Inc.

He described the move as a "huge step" for the company.

The Fujieki family, which has owned and operated Star Markets since 1927, decided early this year to leave the grocery business, the company said in a statement.

"The agreement to sell our business to Times will ensure that (our) loyal employees and customers, who have put their trust in us for over 70 years, will still have a place to go for their daily shopping," said Karl Wissmann, president and CEO of Star Markets.

Albert and Wallace Teruya established Times Supermarkets on O'ahu in 1949 as a way to serve Hawai'i's plantation communities. In 2002, PAQ bought Times from the Teruya family.

Today, the chain operates a dozen supermarket and pharmacy locations on O'ahu and has about 1,100 employees. With the acquisition of Star Markets, Times Supermarkets will have more than 1,600 local employees.

Bob Stout, Times' senior director of operations, said the remaining Star Markets locations would be rebranded under the Times Supermarkets name.

But he said the employees would remain and the operation would be business as usual for customers and employees.

Times is acquiring all the assets of Star Markets, and that the inventories of both stores would merge to some extent to retain a selection familiar to Star Markets customers. All union contracts will remain in place.

In addition to its 12 stores, Times also operates two Fujioka's Fine Wine stores and Shima's Market in Waimanalo.