Kroger, the US retail giant, has signed a definitive agreement to acquire regional competitor Giant Eagle, a US food and pharmacy retailer, in a transaction valued at $1.65 billion.
According to a company statement, the transaction consists of $1.25 billion in cash consideration alongside the assumption of approximately $400 million in outstanding liabilities. The deal, which has been unanimously approved by Kroger’s board of directors, is funded entirely with cash. Giant Eagle currently generates approximately $9 billion in annual sales. The family-owned business operates a footprint consisting of 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.
The transaction is expected to close in 2027, subject to customary closing conditions and regulatory clearance, which is anticipated to require limited Giant Eagle store divestitures. RBC Capital Markets is serving as exclusive financial advisor to Kroger, while Wells Fargo is advising Giant Eagle.
Kroger chief executive officer Greg Foran commented: “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”.
Source: Kroger (via PR Newswire)
