Staff report

Cincinnati-based Kroger Co. announced Wednesday the $1.65 billion acquisition of Giant Eagle stores and its private label ventures.

An unknown number of Giant Eagle stores will be dropped from its current roster of 197 to obtain federal regulatory approval, Kroger said in a joint news release. Giant Eagle operates 11 stores in Mahoning, Trumbull and Columbiana counties and 87 in Ohio, according to real-time inventory tracker storelocators.com.

Previously, Kroger sought to acquire national grocer Albersons in a $25 billion merger. The effort failed in late 2024 as it faced Federal Trade Commission opposition.

The Kroger-Giant Eagle transaction is expected to close in 2027. Kroger said it will finance the transaction with cash.

Giant Eagle will maintain its brand identity and Cranberry Township headquarters, a Giant Eagle official told Pittsburgh TV station KDKA. The outlet also reported that Giant Eagle’s myPerks loyalty program will stay in place.

No immediate reductions in force or store closings are expected among Giant Eagle’s unionized workforce, the Akron Beacon Journal reported. Carl Green, United Food and Commercial Workers Local 880 president, said Giant Eagle will operate as a division of Kroger. Local 880 represents workers in northern Ohio.

Kroger’s board of directors unanimously approved the move to acquire the family-owned food and pharmacy retailer with approximately $9 billion in annual sales and supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana.

According to the Reuters news service, Giant Eagle dealt directly with Kroger officials to reach a deal. The purchase price is made up of $1.25 billion in cash consideration and the assumption of approximately $400 million in outstanding liabilities.

“Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” said Greg Foran, Kroger CEO. “We evaluated the opportunity carefully, and the strategic fit is clear.

“Giant Eagle expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day.”

Giant Eagle CEO Bill Artman said the merger is an exciting new chapter.

“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 our customers, while providing greater growth opportunities for our dedicated team members,” he said.

Kroger, listed on the New York Stock Exchange, was up 72 cents at Wednesday’s market close to finish the day at $56.25 and was listed at $56.40 in early after-hours trading.

This is the second and third major transactions Giant Eagle has undertaken. A year ago, the company sold its GetGo business to Alimentation Couche-Tard Inc. for $1.57 billion. The sale involved approximately 270 GetGo and WetGo locations.

Alimentation Couche-Tard operates convenience stores across the globe. During the same period, Giant Eagle sold its wholesale motor fuels distribution business to Cary Oil Company Inc. at an undisclosed price.