Kroger has announced it has an agreement in place to purchase Pennsylvania-based grocery chain Giant Eagle for $1.65 billion.
Cincinnati, Ohio-based Kroger made the announcement Wednesday morning.
Kroger’s Chief Executive Officer said “Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty…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.”
Giant Eagle operates 197 supermarkets and 11 standalone pharmacies across Ohio, West Virginia, Maryland, Indiana, and western Pennsylvania. Forbes considers Giant Eagle one of the largest and top private companies.
Kroger, which is publicly traded, operates over 1,200 grocery stores across 16 states, mainly in the Midwest and South.
The deal clears the way for Kroger to reenter the Western Pennsylvania market, after exiting the area in the 1980’s.
Kroger says the deal is expected to close sometime next year, pending regulatory approval.