CINCINNATI — Kroger will acquire Giant Eagle for $1.65 billion under a newly-announced definitive agreement announced by both companies on Wednesday.
Giant Eagle is a family-owned food and pharmacy retailer claiming approximately $9 billion in annual sales; the company has 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.
The transaction has been unanimously approved by Kroger's board of directors.
"Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty," said Greg Foran, Kroger's CEO, in a press release. "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."
Kroger announced it will buy Giant Eagle with cash, according to the announcement. The two companies also said they expect to make "limited" divestitures of some Giant Eagle stores, a requirement for regulatory clearance to make the acquisition.
The transaction is expected to fully close in 2027, but it's still subject to regulatory clearance and other closing conditions, Kroger says.
Once the transaction is completed, Kroger said it plans to bring its programs, including Kroger's Zero Hunger, Zero Waste campaign, to Giant Eagle locations.
"Today's announcement marks an exciting next chapter for our Team Members, customers, vendors and community partners," said Bill Artman, CEO at Giant Eagle, in a press release. "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."
