Kroger has announced its acquisition of the regional grocer and pharmacy retailer Giant Eagle, with the deal valued at $1.65 billion. Giant Eagle, a privately owned company, operates 197 supermarkets and 11 standalone pharmacies in northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana.
Kroger, known for its multiple retail brands such as Ralphs, King Soopers, Smith’s, and Fred Meyer, will pay $1.25 billion in cash and take on approximately $400 million in liabilities. Kroger’s CEO, Greg Foran, praised Giant Eagle as a reputable regional grocer known for fresh products and strong customer loyalty. Foran, formerly with Walmart, became Kroger’s CEO in February and is recognized for his tech-savvy and meticulous leadership.
Both companies foresee the potential need to divest a few Giant Eagle stores to obtain regulatory approval for the acquisition. The transaction is set to be finalized next year. Following the announcement, Kroger’s stock decreased by nearly 3% in pre-market trading.