Kroger buying Giant Eagle in $1.65B deal
Kroger to buy Giant Eagle for $1.65B, adding 197 stores & 11 pharmacies across five states; deal closes in 2027.
- Kroger announced it is buying Giant Eagle for $1.65 billion.
- The deal includes 197 supermarkets and 11 standalone pharmacies across five states.
- This acquisition follows Kroger’s failed attempt to merge with Albertsons.
- The transaction is expected to be finalized in 2027, pending regulatory approvals.
Kroger is buying Giant Eagle, adding nearly 200 more supermarkets to its portfolio in a billion-dollar deal.
The Cincinnati-based grocery giant announced the purchase agreement in a news release July 1.
Kroger will buy Pittsburgh-based Giant Eagle for $1.65 billion, acquiring its 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 Kroger CEO Greg Foran. “We evaluated the opportunity carefully, and the strategic fit is clear.”
The deal is comprised of $1.25 billion in cash from Kroger and about $400 million in debt from Giant Eagle that Kroger will assume, according to the news release.
Kroger and Giant Eagle deal expected to close in 2027
As part of the deal, Kroger and Giant Eagle expect to make “limited Giant Eagle store divestitures” for regulatory reasons, though it is unclear what stores will be affected.
The transaction is expected to close in 2027.
“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,” said Giant Eagle CEO Bill Artman.
Giant Eagle follows Albertstons bid
The Giant Eagle bid follows Kroger’s attempt in 2022 to buy Boise-based Albertsons.
Albertsons and Kroger, two of the largest grocery retailers in the United States, abandoned plans for a $24.6 billion merger after federal and state judges blocked the transaction in 2024.
The companies have since terminated the deal and are now involved in litigation against each other over breakup fees and allegations that the merger agreement was breached.
Giant Eagle is major employer in Ohio
Founded in 1931, Giant Eagle has more than 200 stores throughout the region, $9 billion in annual sales and had remained family-owned since its founding.
It is the 12th largest employer across Ohio, with an estimated 17,400 employees across the state, according to the Ohio Department of Development.
Kroger is nation’s largest supermarket chain
Kroger operates nearly 2,700 stores in 35 states and the District of Columbia, including 77 in Greater Cincinnati. The company employs 403,000 workers, including nearly 20,000 in the Greater Cincinnati region.
The retailer operates stores under the Kroger banner name as well as Fred Meyer, Ralphs, Harris Teeter, Pick ‘n Save, Dillons, King Soopers, Mariano’s, Fry’s, QFC and others.
