The Kroger Co. (NYSE:KR) said Wednesday it has agreed to acquire privately held Giant Eagle for $1.65 billion, including $1.25 billion in cash and the assumption of about $400 million in liabilities.
Following the announcement, the stock is trading lower during Wednesday’s session.
Kroger Expands Regional Grocery, Pharmacy Footprint
Giant Eagle operates 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana, generating approximately $9 billion in annual sales.
Kroger said the acquisition will expand its footprint in adjacent markets and strengthen its grocery, pharmacy and digital capabilities.
Financial Impact And Capital Allocation
The company expects the deal to be accretive to adjusted earnings per share in the second full year after closing, excluding one-time transaction and integration costs.
The retailer will fund the acquisition with cash while maintaining its target net debt-to-adjusted EBITDA ratio of 2.3x to 2.5x. It also plans to continue its dividend, subject to board approval, and its previously announced $2 billion share repurchase program.
Timeline And Cash Position
The companies expect to make limited Giant Eagle store divestitures to secure regulatory approval. The transaction is expected to close in 2027, subject to regulatory clearance and customary closing conditions.
Kroger reported $2.873 billion in cash and cash equivalents for the fiscal quarter ending May 23, 2026.
Kroger Price Action
KR Price Action: Kroger shares were down 1.13% at $54.90 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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