Kroger to acquire Giant Eagle in $1.65 billion deal
Kroger announced a $1.65 billion purchase of regional chain Giant Eagle, expanding its Midwest and Mid-Atlantic footprint after a blocked merger with Albertsons.
Kroger said on Wednesday it will buy the regional supermarket chain Giant Eagle for $1.65 billion, marking its first major acquisition since a court halted its proposed $25 billion merger with Albertsons. The deal includes $1.25 billion in cash and the assumption of roughly $400 million of Giant Eagle’s liabilities.
Giant Eagle operates about 197 supermarkets and 11 standalone pharmacies in northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. Kroger, which runs roughly 2,700 supermarkets and multi-department stores and about 2,200 pharmacies across 35 states, said the purchase will extend its reach into “attractive adjacent markets.”
"We evaluated the opportunity carefully, and the strategic fit is clear," Kroger CEO Greg Foran said in a statement. "Giant Eagle expands our reach into attractive adjacent markets."
Kroger expects the acquisition to lift adjusted earnings beginning in the second full year after the transaction closes, which is projected for 2027. The move follows the collapse of the Albertsons merger after antitrust regulators blocked the deal, prompting the retailer to seek growth through other acquisitions.
