Kroger to acquire Giant Eagle for $1.65 billion

• Kroger (NYSE:KR) agreed to acquire Giant Eagle for $1.65 billion, including $1.25 billion in cash and $400 million in assumed liabilities.
• The deal adds 197 supermarkets and 11 pharmacies across five U.S. states to Kroger’s network.
• Kroger expects the transaction to be EPS-accretive in the second full year after closing, expected in 2027.

Kroger (NYSE:KR) agreed to acquire Giant Eagle for $1.65 billion, expanding its grocery and pharmacy footprint across five U.S. states through the addition of 197 supermarkets and 11 pharmacies.

The transaction compares with Giant Eagle’s reported scale of about $9 billion in annual sales and represents a consolidation move within the U.S. grocery retail sector.

The deal structure includes $1.25 billion in cash and $400 million in assumed liabilities, with Kroger planning to finance the acquisition using cash on hand.

Kroger said it expects net debt to adjusted EBITDA to remain within a 2.3x–2.5x range and confirmed it will maintain its dividend and $2 billion share buyback program.

Kroger said it expects limited store divestitures as part of the regulatory review process and anticipates closing the transaction in 2027 subject to approvals and customary conditions.

Kroger added that the deal supports its broader strategy to expand scale in core grocery markets while maintaining disciplined capital allocation and balance sheet targets.