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The American supermarket giant Kroger is acquiring industry peer Giant Eagle for 1.65 billion U.S. dollars (1.52 billion euros). The deal marks the first major acquisition under CEO Greg Foran and strengthens Kroger’s position in the Midwest and Mid-Atlantic regions of the United States.
Affluent customers in new regions
Kroger is paying $1.25 billion (€1.15 billion) in cash and will also assume $400 million (€368 million) in outstanding debt from Giant Eagle. The family-owned company behind Giant Eagle, which generates approximately $9 billion (€8.28 billion) in annual revenue, operates 197 supermarkets and 11 independent pharmacies in the states of Ohio, Pennsylvania, West Virginia, Maryland, and Indiana.
“We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into attractive adjacent markets,” said Foran. The deal comes at a time when traditional supermarkets are under pressure from intense competition from Walmart, Amazon, and other players. But discounters such as Aldi are also performing better, as consumers switch to cheaper options.
Giant Eagle has a customer base consisting primarily of older, financially more resilient shoppers, which makes the business model less sensitive to economic cycles. Kroger expects to complete the transaction in 2027. The acquisition is expected to contribute to adjusted earnings starting in the second full year after completion.
