Grocery store giant Kroger will buy competitor Giant Eagle for $1.65 billion, the company has announced.
Founded in 1931, Giant Eagle is a family-owned food and pharmacy retailer with 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.
Kroger, meanwhile, has about 2,700 supermarkets and multi-department stores and around 2,200 pharmacies across 35 states.
"Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty," Kroger’s Chief Executive Officer Greg Foran said.
"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 who was named Kroger's CEO in February, has a reputation as a tech-savvy and detail-oriented leader.
Kroger and Giant Eagle anticipate having to divest a limited number of Giant Eagle stores in order to receive the necessary regulatory clearance for the transaction, the companies said.
The transaction has already been approved by Kroger’s board of directors and is expected to close in 2027, subject to receipt of required regulatory clearance and other customary closing conditions.
The deal comes after Kroger's failed $25 billion merger plan with Albertsons in 2024 that was blocked by the courts.
The retailer has been battling fierce competition from Walmart and Amazon while also trying to cut grocery prices to appeal to consumers battling cost-of-living pressures.
