I n 1919, Axel Peterson bought a half interest in the Goulett-Homme Hardware store and undertaking business in Onamia, MN and in 1923 he became the sole proprietor. On January 1, 1936 he sold the Onamia Hardware Store and started a hardware store and undertaking business in Milaca. The undertaking business established by Axel Peterson was known as the Uglem-Peterson Funeral Home and was located on the corner of Central Avenue and Third Street.

In 1942, Axel Peterson was joined in the operation of the firm by Elmer Johnson. In 1947, they formed a partnership which became the corporation known as Peterson-Johnson Funeral Home.

Over the years the Peterson-Johnson Funeral Home has been remodeled and expanded to provide better service to the families it served. For many years the Peterson-Johnson Funeral Home worked with the Milaca Hospital to provide ambulance service to the Milaca area. In 1967, this service was turned over the the Milaca Area Hospital.

In 1974, Elmer Johnson sold the business to Craig Peterson. Craig Peterson sold the funeral home to Wesley Siemers in 1989. Reese Hultman joined the staff in 1997 and his wife Kim Hultman was hired in 2010.