Kroger has announced the acquisition of food and pharmacy retailer Giant Eagle for a price of $1.65bn.
This transaction includes Giant Eagle’s 197 supermarkets and 11 pharmacies across Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana.
The deal received unanimous approval from the board of directors and is part of the supermarket retailer’s plan to acquire businesses which can create value for shareholders.
The business plans to leverage Giant Eagle’s established store base, loyalty program, pharmacy business, and private label range to push towards further growth.
According to Kroger, its ecommerce solutions, data and personalization capabilities will create a significant opportunity to accelerate growth both in-store and online.
Greg Foran, CEO of Kroger said: “Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label, and customer loyalty. We evaluated the opportunity carefully, and the strategic fit is clear.
“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.”
Additionally, the companies plan to build on the brand’s history of community engagement programs by expanding Kroger’s zero hunger and zero waste impact scheme.
Kroger is set to finance the deal with cash, and the transaction is expected to close in 2027 subject to approval from regulatory clearance other legal conditions.
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