National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Kroger, Albertsons Enter $25B Mega-Merger of Grocery Giants
Kroger and Albertsons Companies, Inc. said Friday that they had entered into a definitive merger agreement. The merger, which surfaced in news reports Thursday of discussions between the two grocery giants, has an enteprise value of $24.6 billion, including the assumption of $4.7 billion in Albertsons debt.
The two companies said the combination would expand customer reach and “improve proximity to deliver fresh and affordable food to approximately 85 million households with a premier omnichannel experience.”
“We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders,” said Rodney McMullen, Kroger chairman and CEO, who will lead the combined company. “Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores.”
Together, Albertsons and Kroger currently employ more than 710,000 associates and operate a total of 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers. The combination will operate across 48 states and the District of Columbia.
However, it will likely operate with a slightly smaller number of stores. In connection with obtaining the requisite regulatory approvals, Kroger and Albertsons expect to make store divestitures.
For insights into retailing trends and innovations, come to Connect Retail West, a live conference scheduled for Nov. 9 in Los Angeles. Click here to register.
- ◦Sale/Acquisition
