The Kroger Co. announced Wednesday it has reached a definitive agreement to acquire Giant Eagle, a family-owned grocery and pharmacy chain, in a deal valued at $1.65 billion.
The acquisition includes approximately 197 supermarkets and 11 standalone pharmacies across Ohio, Pennsylvania, West Virginia, Maryland and Indiana. Kroger said the purchase will expand its presence in neighboring markets while strengthening its grocery, pharmacy and eCommerce operations.
The deal includes $1.25 billion in cash and the assumption of about $400 million in liabilities. Kroger expects the acquisition to boost earnings by the second full year after closing, excluding one-time integration costs.
The companies said limited store divestitures are expected as part of the regulatory approval process. The transaction, approved by Kroger's board, is expected to close in 2027, pending regulatory clearance and customary closing conditions.
Hutchinson based Dillons is a division within the Kroger Family of Stores.