Kroger announced on Wednesday that it will acquire food and pharmacy retailer Giant Eagle in a $1.65 billion deal as part of its expansion strategy.
Giant Eagle is a prominent family-owned food and pharmacy retailer, generating around $9 billion in yearly revenue with 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana.
The $1.65 billion purchase price includes $1.25 billion in cash and approximately $400 million in liabilities assumed.
Kroger CEO Greg Foran told investors, “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.”
“Today’s announcement marks an exciting next chapter for our Team Members, customers, vendors, and community partners,” said Bill Artman, CEO of Giant Eagle. “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.”
The transaction involves $1.25 billion in cash and the assumption of approximately $400 million in Giant Eagle’s outstanding liabilities, Kroger stated.
The deal is expected to close in 2027.
By CEO NA Editorial Staff
