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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. 

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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