Kroger expands reach by acquiring Giant Eagle for $1.65 billion
A family-owned regional chain of grocery and pharmacy stores founded in Pittsburgh has agreed to join The Kroger Company.
Giant Eagle has 197 supermarkets and 11 standalone pharmacies across several states, including northern Ohio and western Pennsylvania, as well as Indiana, West Virginia and Maryland.
Giant Eagle entered into an agreement to be acquired by Kroger but Giant Eagle stores will retain their name.
According to their website, customers can expect the same “familiar supermarkets and pharmacies, high-quality products, services and dedicated team members.”
Bill Artman is the CEO of Giant Eagle; the first Giant Eagle supermarket opened in 1936.
“Today’s announcement marks an exciting next chapter for our team members, customers, vendors and community partners,” 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.”
The $1.65-billion transaction is expected to close in 2027.
Greg Foran is the CEO of Kroger, headquartered in Cincinnati serving more than 400,000 associates who serve over 11 million customers daily.
“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” Foran said.
Founded in 1883, Kroger operates more than 2,700 stores under different brand names in 35 states.
“We evaluated the opportunity carefully, and the strategic fit is clear,” Foran said. “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.”
RBC Capital Markets is serving as exclusive financial advisor, and Jones Day is serving as legal counsel to Kroger.
Wells Fargo is serving as exclusive financial advisor to Giant Eagle. WilmerHale is serving as the primary legal advisor and Troutman Pepper Locke is serving as local counsel on Giant Eagle’s behalf.
