Kroger will acquire Giant Eagle in $1.6 billion deal
The name will remain the same, but next year Giant Eagle will have new ownership, it was announced Wednesday.
The Kroger Co., which owns about 1,200 grocery stores that operate under that moniker, along with several other regional grocery chains, is acquiring Giant Eagle for $1.6 billion. The Cincinnati-based Kroger will formally take ownership of the 197 supermarkets and 11 pharmacies that operate under the Giant Eagle banner in 2027.
In a statement, Greg Foran, Kroger’s CEO, said “Giant Eagle is a well-run, high quality regional grocer” and that by acquiring it, Kroger would be able to expand its reach “into attractive adjacent markets.”
“Today’s announcement marks an exciting next chapter for our team members, customers, vendors and community partners,” said Bill Artman, Giant Eagle’s CEO. “Together with Kroger, we will be well-positioned to advance our strategy and deliver better quality and service, better everyday value, and a better shopping experience for customers, while providing greater growth opportunities for our dedicated team members.”
Giant Eagle stores will continue to bear that name, and Kroger will continue Giant Eagle’s myPerks program. The company will likely keep its headquarters in Cranberry Township and retain its leadership, according to Artman.
The company has been a mainstay in the Pittsburgh region for almost 100 years, going back to the merger of the OK Grocery chain with Eagle Grocery in 1931. Starting in the 1980s, it started purchasing other retailers and expanding its reach. It now has locations in northern Ohio, West Virginia, Maryland and Indiana.
Some Giant Eagle stores may end up closing or be sold as a result of the deal. In order to clear regulatory hurdles, “Kroger and Giant Eagle expect to make limited Giant Eagle divestitures,” according to the news release announcing the acquisition.
For decades, Giant Eagle held an unassailable position as the Pittsburgh region’s top grocer, but in recent years it has been overtaken by Walmart. The Pittsburgh grocery market could become even more crowded in the years ahead, with New York-based Wegmans and Michigan-based Meijer both building stores in Cranberry Township. Kroger has no stores that operate under that name in the Pittsburgh region, with the closest locations being in the West Virginia cities of Weirton, Wheeling and Morgantown.
Once Kroger acquires Giant Eagle, it will join 18 other regional grocery chains and pharmacies Kroger owns, including Dillons in Kansas, California-based Ralphs and King Scoopers in Colorado and Wyoming.