Cincinnati and Pittsburgh — The Kroger Co. and Giant Eagle, Inc. have entered into a definitive agreement in which Kroger will acquire Giant Eagle, a family-owned food and pharmacy retailer. The company operates 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.
The purchase price will be $1.65 billion, comprised of $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities.
In connection with obtaining the requisite regulatory clearance necessary to complete the transaction, the two companies will have to sell off a small number of Giant Eagle stores.
The transaction is expected to close in 2027, subject to customary closing conditions.
RBC Capital Markets is serving as exclusive financial advisor, while 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.