FILE-A Kroger grocery store is shown in Savannah, Georgia. (Parker Puls/Bloomberg via Getty Images)
Kroger is purchasing Giant Eagle in a $1.65 billion deal, to enhance its presence in the Midwest and the Mid-Atlantic region.
Reuters reported that this deal marks Kroger’s first significant acquisition since its $25 billion merger with Albertons collapsed in 2024.
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Giant Eagle, a regional supermarket chain, earns $9 billion in annual sales and has 197 stores and 11 pharmacies in northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana.
Kroger told Reuters that its planning price cuts on thousands of items, funded partially by direct imports and enhanced technology.
The Associated Press reported that the acquisition includes $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities.
RELATED: Albertsons and Kroger agree to pause merger amid legal, regulatory challenges
This move comes after an unsuccessful merger between Kroger and Albertsons. In 2024, the two companies agreed to pause their proposed $25 billion merger while regulators pursued legal challenges in an effort to block the deal.
Kroger and Albertsons agreed to a temporary injunction that placed the merger on hold while a lawsuit filed by Colorado took place, FOX Business reported.
Kroger statement on the Giant Eagle deal
What they're saying:
"Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty," Kroger CEO Greg Foran said in a statement provided to The Associated Press. "We evaluated the opportunity carefully, and the strategic fit is clear."
Kroger, which is based in Cincinnati, expects the deal to close in 2027.
In 2024, Kroger and Albertsons agreed to pause their proposed $25 billion merger while regulators pursued legal challenges in an effort to block the deal.
The two companies agreed to a temporary injunction that placed the merger on hold while a lawsuit filed by Colorado took place, FOX Business reported.
The Source: Information for this story was provided by Reuters, FOX Business, and The Associated Press, which obtained a statement from Kroger CEO Greg Foran. This story was reported from Washington, D.C.