Cincinnati and Pittsburgh — The Kroger Co. and Giant Eagle, Inc. have entered into a definitive agreement under which Kroger will acquire Giant Eagle, a leading family-owned food and pharmacy retailer with 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. The transaction has been unanimously approved by Kroger’s board of directors.
The purchase price will be $1.65 billion, comprised of $1.25 billion in cash consideration and the assumption of approximately $400 million in outstanding liabilities.
“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” says Greg Foran, chief executive officer at Kroger. “We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle 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.”
Founded in 1931, Giant Eagle, Inc. has grown to be a leading food and pharmacy retailer in the region, with more than 200 stores. The companies plan to build on Giant Eagle’s long history of community engagement by bringing Kroger’s Zero Hunger | Zero Waste impact plan to new communities.
“Today’s announcement marks an exciting next chapter for our team members, customers, vendors and community partners,” says Bill Artman, chief executive officer at Giant Eagle. “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, while providing greater growth opportunities for our dedicated team members.”
In connection with obtaining the requisite regulatory clearance necessary to consummate the transaction, Kroger and Giant Eagle expect to make limited Giant Eagle store divestitures.
The transaction is expected to close in 2027, subject to receipt of required regulatory clearance and other customary closing conditions.
RBC Capital Markets is serving as exclusive financial advisor, and Jones Day is serving as legal counsel to Kroger. Wells Fargo is serving as exclusive financial advisor to Giant Eagle. WilmerHale is serving as the primary legal advisor and Troutman Pepper Locke is serving as local counsel on Giant Eagle’s behalf.
SOURCE: The Kroger Co.