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Kroger plans to buy Giant Eagle in $1.65 billion deal
Regional grocer would keep its name under pact subject to regulatory approval
Key Takeaways:
- Kroger said July 1 it plans to acquire Giant Eagle for $1.65 billion, expanding its footprint while keeping Giant Eagle’s brand and operations unchanged.
- The deal adds 197 supermarkets and 11 pharmacies across five Midwestern and mid-Atlantic states, strengthening Kroger’s position as grocers face pressure from Walmart, Costco and Amazon.
- The transaction, including $1.25 billion cash and assumed liabilities, is subject to regulatory approval and likely requires limited store divestitures before an expected close next year.
Kroger said July 1 it plans to buy regional grocer and pharmacy retailer Giant Eagle in a deal valued at $1.65 billion.
Giant Eagle, which is privately held, has 197 supermarkets and 11 stand-alone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. They would continue to operate under the Giant Eagle name under the terms of the deal.
Kroger, which is the largest U.S. supermarket chain, has 2,685 stores in 35 states and the District of Columbia. Its stores operate under various brand names, including Ralphs, King Soopers, Smith’s and Fred Meyer.
Kroger ranks No. 31 on the Transport Topics Top 100 list of the largest private carriers in North America.
The transaction includes $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities, the companies said.
“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. “We evaluated the opportunity carefully, and the strategic fit is clear."
Foran, a former Walmart executive, was named Kroger's CEO in February.
Kroger and other traditional grocers have been squeezed in recent years as consumers do more of their food shopping at big retailers like Walmart, Costco and Amazon and discount chains like Aldi.
Walmart, Costco and Amazon rank Nos. 1, 53 and 15, respectively, on the private TT100.
In 2022, Kroger announced a plan to merge with rival Albertsons, arguing that a larger chain would be better able to compete against rivals. But the Federal Trade Commission and two states — Washington and Colorado — sued to block the merger in 2024, saying it would raise prices and lower workers’ wages by eliminating competition. The proposed merger was scrapped in late 2024 after judges overseeing two separate cases both halted the deal.
Burt Flickinger, a longtime grocery industry analyst and managing director of Strategic Resource Group, a market research company, called Kroger's acquisition of Giant Eagle “a master stroke” that gives Kroger a gateway to the mid-Atlantic, the Northeast and New England.
“There should be no antitrust concerns because Kroger consistently lowers prices when it makes acquisitions," Flickinger said.
The deal, which is subject to regulatory approval, is expected to close next year. Kroger and Giant Eagle said they anticipate having to divest a limited number of Giant Eagle stores in order to receive the necessary regulatory clearance.
Kroger's shares were flat in afternoon trading July 1.
