Kroger to buy Giant Eagle for $1.65 billion
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Kroger will buy Cranberry-based Giant Eagle. Photo: Allison Farrand/Bloomberg via Getty Images
Cincinnati-based Kroger will buy local grocery chain Giant Eagle for $1.65 billion, the company said Wednesday.
Why it matters: Cranberry-based Giant Eagle has dominated Western Pennsylvania's grocery market for decades, making it one of the region's most influential retailers and among Pennsylvania's largest private employers.
Zoom in: Kroger CEO Greg Foran said the deal allows the company to "expand our reach into attractive adjacent markets."
- Kroger said in a statement to Axios that Giant Eagle stores will keep the Giant Eagle name and that it doesn't expect the acquisition will result in store closures.
- Kroger and Giant Eagle do expect to divest a limited number of Giant Eagle stores to complete the transaction, per a news release. The companies did not specify how many.
By the numbers: Giant Eagle operates roughly 200 supermarkets and pharmacies across Pennsylvania, northern Ohio, West Virginia, Maryland, and Indiana — employing more than 30,000 workers. The company has about $9 billion in annual sales, per a news release.
What they're saying: "We will be well-positioned to advance our strategy and deliver better quality and service, better everyday value and a better shopping experience for our customers, while providing greater growth opportunities for our dedicated team members," said Giant Eagle CEO Bill Artman.
Flashback: Kroger served the Pittsburgh market for decades before exiting in the 1980s. Today, it operates more than 2,700 stores across the U.S. under a variety of banners.
- Giant Eagle has century-old roots in the Pittsburgh region. Three families founded Eagle Grocery in 1918, rapidly expanded, and sold the chain to Kroger. They later reunited with other partners to form Giant Eagle, and the first supermarket opened on Brownsville Road in 1936.
- Giant Eagle sold GetGo for $1.6 billion last year to Canadian Alimentation Couche-Tard.
The big picture: Competition is intensifying in Pittsburgh's grocery market. Wegmans plans to open its first area store in Cranberry in late 2027, and Meijer is making moves in the region.
What's next: The deal is expected to close in 2027 pending regulatory clearance.