Kroger buying regional grocer and pharmacy retailer Giant Eagle in deal valued at $1.65 billion

Kroger buying regional grocer and pharmacy retailer Giant Eagle in deal valued at $1.65 billion centers on Kroger’s acquisition of Giant Eagle to expand its footprint in the Mid-Atlantic and Midwest. The deal, announced Wednesday, values the privately held retailer at $1.65 billion. Giant Eagle operates 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. Kroger said it will pay $1.25 billion in cash and assume about $400 million in outstanding liabilities. Kroger CEO Greg Foran, named in February after serving at Walmart, said the strategy fit is clear, citing strengths in fresh products, pharmacy, private label and customer loyalty. The companies anticipate divesting a limited number of Giant Eagle stores to obtain regulatory clearance, with closing expected next year. Kroger shares fell nearly 3% before the market opened.