Kroger to buy retailer Giant Eagle in a $1.65 billion dea…

Kroger plans to acquire the supermarket chain Giant Eagle for $1.65 billion amidst growing competition in the grocery industry. This deal comes after Kroger's block of a $25 billion merger with Albertsons. The strategic move is intended to help Kroger expand into new markets and combat pressures from rivals like Walmart and Amazon. The acquisition involves $1.25 billion in cash plus assumption of $400 million in liabilities. Giant Eagle operates 197 supermarkets and 11 pharmacies across several states. Kroger expects the purchase to enhance profits by 2027.

Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv

Illustration shows Kroger logo

Kroger logo is seen in this illustration taken, February 11, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

Companies
Giant Eagle, Inc.

Kroger Co

Albertsons Companies Inc

Show more companies

July 1 (Reuters) - Kroger (KR.N), opens new tab said on Wednesday it would buy supermarket chain Giant Eagle in a $1.65 billion deal, as it looks to scale amid ‌intense competition in the grocery sector.

The deal follows Kroger's failed $25 billion merger plan, opens new tab with grocer Albertsons (ACI.N), opens new tab in 2024, after courts blocked the deal.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

Dealmaking in the consumer industry, including food, beverage, personal care, pet products and health, has been robust. Companies are ⁠consolidating to weather inflationary pressures, shifting consumer preferences and competition.

Kroger is fighting intense competition from rivals including Walmart (WMT.O), opens new tab and online retailers such as Amazon (AMZN.O), opens new tab. It has been trying to bring down grocery prices to appease consumers battling cost-of-living pressures.

"We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into attractive adjacent markets," Kroger CEO Greg Foran said.

The transaction involves $1.25 billion ‌in ⁠cash consideration and the assumption of approximately $400 million in Giant Eagle's outstanding liabilities, Kroger said.

Shares of Cincinnati, Ohio-based Kroger were down about 2% in premarket trading.

Giant Eagle operates around 197 supermarkets and 11 standalone pharmacies across northern ⁠Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.

In comparison, Kroger operates about 2,700 supermarkets and multi-department stores and around 2,200 pharmacies across 35 ⁠states in the U.S.

The retailer expects the transaction to be accretive to adjusted profit in the second full year following the deal's ⁠close in 2027.

Kroger reaffirmed its annual forecasts in June as it warned about inflationary pressure in the back half of the year.

Reporting by Neil J Kanatt in Bengaluru; Editing by Shreya Biswas

Our Standards: The Thomson Reuters Trust Principles., opens new tab

X
Facebook
Linkedin
Email
Link

Purchase Licensing Rights

Kroger to buy retailer Giant Eagle in a $1.65 billion deal

Read Next / Editor's Picks