Kroger has acquired a major regional competitor for an eye-popping amount of money.
Kroger announced Wednesday it has purchased Pittsburgh-based Giant Eagle for $1.65 billion. Giant Eagle is a leading family-owned food and pharmacy retailer with approximately $9 billion in annual sales and 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.
“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, Chief Executive Officer at Kroger, in a statement. “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.”
The deal is made up of $1.25 billion cash and $400 million in debt owed by Giant Eagle that Kroger will assume. As part of the deal, Kroger will make “limited Giant Eagle store divestitures” by closing some of the company’s stores, although it is currently unknown which stores those will be. The deal will close sometime in 2027.
“Today’s announcement marks an exciting next chapter for our Team Members, customers, vendors and community partners,” said Bill Artman, CEO of Giant Eagle, in a statement. “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.”
According to the Ohio Department of Development, Giant Eagle is the state of Ohio’s 12th largest employer, with over 17,000 employees scattered across the Buckeye State.
Giant Eagle is the latest addition to the list of Kroger chains and acquisitions, which includes Fred Meyer, Ralphs, Dillons, Fry’s, Harris Teeter, Pick ‘n Save, QFC, King Soopers, Mariano’s, Smith’s, Vitacost, Roundy’s and plenty more.
