Kroger to acquire Giant Eagle for $1.65 billion
Kroger is set to purchase Giant Eagle for $1.65 billion, the company announced Wednesday, July 1.
Kroger will assume control in 2027 of the family-owned retailer, which has 197 supermarkets, 11 standalone pharmacies and does $9 billion in annual sales, pending regulatory clearances. The companies expect to sell or close some Giant Eagle locations, according to a news release from Kroger.
“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” said Greg Foran, Kroger’s chief executive officer. “We evaluated the opportunity carefully, and the strategic fit in clear.”
The sale consists of $1.25 billion in cash considerations and the assumption of about $400 million in outstanding liabilities, Kroger said.
Foran said purchasing Giant Eagle will expand Kroger’s reach into adjacent markets. Giant Eagle’s established store base, loyalty program, pharmacy and private label portfolio provides a strong foundation to integrate Kroger’s eCommerce solutions, data capabilities and operating discipline.
