Grocery chains Kroger and Giant Eagle announced this morning that Kroger will acquire Giant Eagle in a deal that will end nearly 100 years of local ownership for the the Cranberry-headquartered food and pharmacy retailer.
According to Kroger, the purchase price for Giant Eagle was $1.65 billion. Giant Eagle owns 197 supermarkets and 11 pharmacies across Western Pennsylvania, northern Ohio, 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 Kroger CEO Greg Foran. “Giant Eagle expands our reach into attractive adjacent markets.”
In a statement, Foran said Kroger moved to acquire Giant Eagle after an evaluation of the business showed a “strategic fit” that aligns with Kroger’s existing strengths. He pointed to Giant Eagle’s base of established stores, its Advantage Care loyalty program, pharmacy business and private label portfolio, and its history of community involvement, saying those assets “provide a strong foundation for growth.
” … We see significant opportunity to accelerate growth both in-store and online, enhance the customer experience and create long-term value for shareholders,” Foran said.
Giant Eagle CEO Bill Artman called the deal “an exciting next chapter” for employees, customers, vendors and community partners, saying it will position the combined grocer to grow and deliver a “better shopping experience.”
The transaction was approved unanimously by Kroger’s board of directors.
Giant Eagle’s annual sales total approximately $9 billion. Kroger said the deal is projected to close in 2027, pending regulatory clearance and other closing conditions.
According to Kroger’s vice president of communications Erin Rolfe, Giant Eagle stores will remain under the Giant Eagle name and banner.
Rolfes added that Kroger does not anticipate any store closures as a result of the acquisition, nor does the company expect to eliminate any frontline roles.
Giant Eagle has been the dominant grocery operator in Western Pennsylvania for decades. At one time, Kroger was its biggest regional competitor, but that company has not operated stores in the region since the mid-1980s, when it left the market after a labor dispute and six-week strike.
Giant Eagle’s roots in Pittsburgh date back to 1918, when three families opened the Eagle Grocery, according to the store’s own history. A decade later, they sold that company to Kroger and left the grocery business.
But in 1931, those families joined two others to form Giant Eagle. They opened their first supermarket in 1936 on Brownsville Road.
This story is developing and will be updated.
