Kroger has announced that it will purchase Giant Eagle for $1.65 billion, combining two of Ohio's largest grocery store chains.
Giant Eagle, based in Pittsburgh, has 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.
Kroger, a Cincinnati-based company, has thousands of stores operating under various brands, including Ralphs, King Soopers, Smith’s and Fred Meyer.
The decision was voted on unanimously by Kroger's Board of Directors.
"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, Chief Executive Officer at 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."
Foran, a former Walmart executive, was named Kroger's CEO in February. He has a reputation as a tech-savvy and detail-oriented leader.
"Today's announcement marks an exciting next chapter for our Team Members, customers, vendors and community partners," said Bill Artman, Chief Executive Officer at 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 and Giant Eagle said they anticipate having to divest a limited number of Giant Eagle stores in order to receive the necessary regulatory clearance for the transaction.
Kroger's stock fell nearly 3% before the market opened.
According to a press release, the sale is expected to close in 2027.
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