The Kroger Co. said July 1 it has agreed to acquire Giant Eagle, a privately held food and pharmacy retailer, for $1.65 billion in cash and assumed liabilities. Kroger said its board has already approved the transaction.
The purchase price consists of $1.25 billion in cash consideration and the assumption of approximately $400 million in outstanding liabilities, subject to customary purchase price adjustments, the company said. Kroger described the deal as consistent with its disciplined approach to capital allocation.
“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 in a statement.
Giant Eagle, founded in 1931, operates nearly 200 supermarkets throughout western Pennsylvania, north central Ohio, northern West Virginia, Maryland and Indiana. The chain is privately owned and also runs pharmacy operations.