CINCINNATI – Kroger Co. announced Wednesday that it has entered into a definitive agreement to acquire Giant Eagle Inc. in a $1.65 billion transaction that would expand Kroger’s presence across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.
The deal, which was unanimously approved by Kroger’s board of directors, includes $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities.
Giant Eagle operates 197 supermarkets and 11 standalone pharmacies and generates about $9 billion in annual sales.
“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, CEO of Kroger. “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.”
Kroger said it plans to combine Giant Eagle’s store network, loyalty program, pharmacy business and private-label products with Kroger’s e-commerce, data and personalization capabilities to grow both in-store and online. The company also said it intends to expand its Zero Hunger | Zero Waste initiative into the communities served by Giant Eagle.
“Today’s announcement marks an exciting next chapter for our Team Members, customers, vendors and community partners,” said Bill Artman, CEO of Giant Eagle. “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.”
Kroger said it will finance the acquisition with cash and expects the transaction to increase adjusted earnings per share beginning in the second full year after the deal closes, excluding one-time transaction and integration costs.
The acquisition remains subject to regulatory approval and customary closing conditions. Kroger and Giant Eagle said they expect to divest a limited number of Giant Eagle stores as part of the regulatory review process.
The companies expect the transaction to close in 2027.