Kroger Strikes $1.65 Billion Deal To Buy Regional Grocer Giant Eagle

The Kroger Co. (NYSE: KR ) said Wednesday it has agreed to acquire privately held Giant Eagle for $1.65 billion, including $1.25 billion in cash and the assumption of about $400 million in liabilities.

Following the announcement, the stock is trading lower during Wednesday’s session.

Kroger Expands Regional Grocery, Pharmacy Footprint Giant Eagle operates 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana, generating approximately $9 billion in annual sales.

Kroger said the acquisition will expand its footprint in adjacent markets and strengthen its grocery, pharmacy and digital capabilities.

Read Also: These Analysts Slash Their Forecasts On Kroger Following Q1 Earnings Financial Impact And Capital Allocation The company expects the deal to be accretive to adjusted earnings per share in the second full year after closing, excluding one-time transaction and integration costs.

The retailer will fund the acquisition with cash while maintaining its target net debt-to-adjusted EBITDA ratio of 2.3x to 2.5x.

It also plans to continue its dividend, subject to board approval, and its previously announced $2 billion share repurchase program.

Timeline And Cash Position The companies expect to make limited Giant Eagle store divestitures to secure regulatory approval.

The transaction is expected to close in 2027, subject to regulatory clearance and customary closing conditions.

Kroger reported $2.873 billion in cash and cash equivalents for the fiscal quarter ending May 23, 2026.

Kroger Price Action KR Price Action: Kroger shares were down 1.13% at $54.90 at the time of publication on Wednesday.

The stock is trading at a new 52-week low, according to Pro data.

Photo via Shutterstock Read Also: Kroger Stock Crashes 10% On Triple Whammy: Missed Earnings, Squeezed Margins And Soft Outlook