U.S. grocer Kroger has reached a $1.65 billion deal to buy regional supermarket chain Giant Eagle, strengthening its presence in the Midwest and the Mid-Atlantic region.
The transaction includes $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities. Giant Eagle, which is privately held, has 197 supermarkets and 11 standalone pharmacies across northern Ohio, Pennsylvania, West Virginia, Maryland and Indiana. The locations will 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.
RBC Capital Markets is serving as the exclusive financial advisor, and Jones Day as the legal counsel to Kroger. Wells Fargo is the financial advisor to Giant Eagle, WilmerHale is the primary legal advisor, and Troutman Pepper Locke is local counsel on Giant Eagle’s behalf.
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