Kroger to Acquire Giant Eagle for $1.65 Billion
The deal aims to expand Kroger's reach into several key Midwestern and Mid-Atlantic states.
Kroger announced Wednesday it has agreed to acquire regional grocer and pharmacy retailer Giant Eagle for $1.65 billion. The transaction includes $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities.
Giant Eagle, a privately held company, operates 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana. Kroger, which operates thousands of stores under brands such as Ralphs, King Soopers, Smith’s, and Fred Meyer, stated that the acquisition would be a strategic fit.
“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” Kroger CEO Greg Foran said in a statement. Foran, who became CEO in February, was previously an executive at Walmart and is known for his tech-savvy approach.
Both companies anticipate that a limited number of Giant Eagle stores will need to be divested to obtain regulatory approval for the deal. The acquisition is expected to be finalized next year.
Following the announcement, Kroger's stock saw a decline of nearly 3% in pre-market trading.