Kroger, the largest U.S. supermarket chain, plans to buy regional grocer and pharmacy retailer Giant Eagle in a deal valued at $1.65 billion. Giant Eagle, which is privately held, has 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana.
Deal Details
The transaction includes $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities. Giant Eagle will continue to operate under its name under the terms of the deal.
Kroger CEO Greg Foran said, “Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label, and customer loyalty. We evaluated the opportunity carefully, and the strategic fit is clear.”
The deal is subject to regulatory approval and is expected to close next year. Kroger and Giant Eagle anticipate having to divest a limited number of Giant Eagle stores to receive the necessary regulatory clearance.
Original reporting: KTBS 3 (Shreveport) — read the source article.
