Kroger to acquire Giant Eagle for $1.65 billion
Cincinnati-based retailer Kroger has entered an agreement to acquire Giant Eagle, one of the biggest food retailers and distributors in the United States, for $1.65 billion.
The deal comprises $1.25 billion in cash consideration and the assumption of approximately $400 million in outstanding liabilities.
Giant Eagle is a leading family-owned food and pharmacy retailer with approximately $9 billion in annual sales and 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana.
Image courtesy of Giant Eagle via Facebook
The transaction has been unanimously approved by Kroger's Board of Directors, the company said in a press release.
A good strategic fit for Kroger
In a statement posted on the company's website, Kroger CEO Greg Foran explained that the acquisition was carefully studied and presented a strategic opportunity for the retailer.
"Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label, and customer loyalty," he said. "[It] expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day."
For his part, Giant Eagle's CEO, Bill Artman, labeled the announcement an "exciting new chapter" for the retailer's stakeholders.
"Together with Kroger, we will be well-positioned to advance our strategy and deliver better quality and service, better everyday value, and a better shopping experience for our customers," he said.
Financial impact and next steps
In a press release, Kroger explained that it would finance the transaction with cash and, after necessary regulatory clearance, the parties expect to make limited divestitures of Giant Eagle stores.
The transaction is expected to close in 2027.
*All images are referential.
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