Kroger to Acquire Giant Eagle for $1.65B
Kroger has entered into a definitive agreement to acquire regional grocer Giant Eagle, Inc.
The national grocer will pay $1.65 billion, comprising $1.25 billion in cash consideration and the assumption of approximately $400 million in outstanding liabilities.
Based in Cranberry Township, Pennsylvania, north of Pittsburgh, Giant Eagle has approximately $9 billion in annual sales and operates 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana.
The company's leadership said that the deal is a strategic fit.
"Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty," Kroger CEO Greg Foran said. "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."
Together with Kroger's e-commerce solutions, data and personalization capabilities, and operating discipline, Kroger officials said the company sees significant opportunity to accelerate growth both in-store and online, enhance the customer experience, and create long-term value for shareholders.
The companies plan to build on Giant Eagle's long history of community engagement by bringing Kroger's Zero Hunger | Zero Waste impact plan to new communities.
Following its failed acquisition of Albertsons Cos. in December 2024, Kroger will once again seek regulatory approval for a major grocery deal. Kroger and Giant Eagle expect to make limited Giant Eagle store divestitures to obtain regulatory clearance.
"Today's announcement marks an exciting next chapter for our team members, customers, vendors and community partners," Giant Eagle CEO Bill Artman said. "Together with Kroger, we will be well positioned to advance our strategy and deliver better quality and service, better everyday value and a better shopping experience for our customers, while providing greater growth opportunities for our dedicated team members."
Once the transaction closes, which is expected in 2027, Kroger expects to maintain its net total debt to its adjusted EBITDA ratio target range of 2.3 – 2.5x.
The company also expects to maintain its dividend, subject to board approval; continue its previously announced $2 billion share repurchase program; and preserve financial flexibility to invest in its strategic priorities and core business.
This article was originally published on P2PI sibling brand Progressive Grocer.
