Kroger is buying regional supermarket chain Giant Eagle for $1.65 billion, a deal that would expand the grocer’s presence across the Midwest and Mid-Atlantic regions.
The transaction includes $1.25 billion in cash and the assumption of about $400 million in outstanding liabilities, the companies said on July 1.
Giant Eagle, a family-owned business founded in 1931, operates 197 supermarkets and 11 standalone pharmacies across western Pennsylvania, northern Ohio, West Virginia, Maryland, and Indiana. The company generates about $9 billion in annual sales, according to Kroger.
“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. “We evaluated the opportunity carefully, and the strategic fit is clear.”…