Kroger to Acquire Giant Eagle for $1.65 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 01 2026
0mins
The Kroger Co. and Giant Eagle announced a definitive agreement under which Kroger will acquire Giant Eagle, a family-owned food and pharmacy retailer with approximately $9B in annual sales and 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. The transaction has been unanimously approved by Kroger's Board of Directors. With a purchase price of $1.65B, comprised of $1.25B in cash consideration and the assumption of approximately $400M in outstanding liabilities, this transaction is consistent with Kroger's disciplined approach to capital allocation and its focus on acquisitions where the company can create clear value for customers, associates and shareholders. Kroger will finance the transaction with cash. Following the close of the transaction, the company expects to maintain its net total debt to adjusted EBITDA ratio target range of 2.3-2.5x. As part of Kroger's commitment to shareholder returns, the company expects to maintain its dividend, subject to board approval, continue its previously announced $2B share repurchase program, and preserve financial flexibility to invest in its strategic priorities and core business. Kroger expects the transaction to be accretive to adjusted EPS per diluted share in the second full year after close, excluding one-time transaction and integration costs. In connection with obtaining the requisite regulatory clearance necessary to consummate the transaction, Kroger and Giant Eagle expect to make limited Giant Eagle store divestitures. The transaction is expected to close in 2027, subject to receipt of required regulatory clearance and other customary closing conditions.
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Analyst Views on KR
Wall Street analysts forecast KR stock price to rise
15 Analyst Rating
9 Buy
6 Hold
0 Sell
Moderate Buy
Current: 58.250
Low
68.00
Averages
75.00
High
85.00
Current: 58.250
Low
68.00
Averages
75.00
High
85.00
About KR
The Kroger Co. is a food and drug retailer. The Company operates supermarkets, multi-department stores and fulfillment centers throughout the United States. It operates approximately 2,697 supermarkets, 2,250 pharmacies and 1,731 fuel centers in over 35 states and the District of Columbia while also operating online through a digital ecosystem to offer customers an omnichannel shopping experience. The Company also manufactures and processes food for sale in its supermarkets and online. It offers Pickup and Harris Teeter ExpressLane personalized, order online, pick-up at the store services at approximately 2,408 of its supermarkets and provides delivery, which allows it to offer digital solutions to its customers. Its delivery solutions include orders delivered to customers at retail store locations, customer fulfillment centers and orders placed through third-party platforms. The Company also offers customer-facing apps and interfaces.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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