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Kroger to buy popular grocery and pharmacy retailer in $1.65B deal
Fox Business • • business
Key Points:
- Kroger announced it will acquire regional supermarket chain Giant Eagle for $1.65 billion, marking its first major acquisition since a blocked $25 billion merger with Albertsons nearly two years ago.
- The acquisition will expand Kroger's presence in Midwestern and Mid-Atlantic markets, where Giant Eagle operates about 197 supermarkets and 11 pharmacies.
- Kroger currently operates around 2,700 supermarkets and 2,200 pharmacies across 35 states, and the deal includes $1.25 billion in cash plus assumption of $400 million in Giant Eagle's liabilities.
- The transaction is expected to increase Kroger's adjusted earnings starting in the second full year after closing, anticipated in 2027.
- The deal reflects ongoing consolidation in the grocery sector as retailers compete amid inflation, changing consumer preferences, and increased competition from Walmart and Amazon.
