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Kroger buying regional grocer and pharmacy retailer Giant Eagle in deal valued at $1.65 billion

Kroger buying regional grocer and pharmacy retailer Giant Eagle in deal valued at $1.65 billion

Summary

Kroger is buying Giant Eagle, a regional grocery and pharmacy chain, for $1.65 billion. The deal includes cash and taking on some debt, with the purchase expected to finish next year after regulatory approval.

Key Facts

  • Kroger is purchasing Giant Eagle for $1.65 billion.
  • Giant Eagle has 197 grocery stores and 11 pharmacies in several states including Ohio and Pennsylvania.
  • The deal consists of $1.25 billion in cash plus about $400 million in debt.
  • Kroger operates thousands of stores under different names like Ralphs and Fred Meyer.
  • The companies expect to sell some Giant Eagle stores to meet regulatory rules.
  • Kroger CEO Greg Foran said Giant Eagle fits well with Kroger’s business.
  • Foran became Kroger’s CEO in February and has a background at Walmart.
  • Kroger’s stock price dropped by nearly 3% after the deal was announced.
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