Breaking Wednesday morning, Kroger plans to acquire Pittsburgh-based Giant Eagle in a $1.65 billion deal.
The agreement would bring Giant Eagle's nearly 200 supermarkets and 11 standalone pharmacies under Kroger's ownership, expanding Kroger's footprint across western Pennsylvania, Ohio, West Virginia, Maryland and Indiana.
Kroger says it may have to sell a limited number of Giant Eagle stores as part of the regulatory approval process.
The acquisition is expected to close in 2027, pending regulatory approval and other customary conditions.
"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."
"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."
Rich Fitzgerald, Executive Director of the Southwestern Pennsylvania Commission says this is a big deal.
“This is almost like when U.S. Steel was bought up by Nippon or Mellon Bank was bought up by BNY, you have a corporate headquarters that has been part of the Allegheny Conference, part of so many community things and when there is a merger of this type taken over by a quote/unquote outside entity, you start to wonder what will be the ramifications of this, this will be something to really keep an eye on,” said Fitzgerald.
More details will be made available in the coming hours and days.
