Kroger To Buy Giant Eagle

(RTTNews) - Kroger Co. (KR) on Wednesday announced a definitive agreement to acquire privately held grocery and pharmacy retailer Giant Eagle, Inc., for $1.65 billion.

The transaction is expected to close in 2027.

The purchase price comprises $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities.

The company expects the transaction to be accretive to adjusted earnings per diluted share in the second full year after closing, excluding one-time transaction and integration costs.

The company expects to maintain its dividend, continue its previously announced $2 billion share repurchase program, and keep its net total debt-to-adjusted EBITDA ratio within its target range of 2.3x to 2.5x following the acquisition.

Giant Eagle operates 197 supermarkets and 11 standalone pharmacies across Ohio, Pennsylvania, West Virginia, Maryland and Indiana, generating approximately $9 billion in annual sales.

In the pre-market trading, Kroger Co. is 1.97% lesser at $54.44 on the New York Stock Exchange.