Kroger and Albertsons announce merger

Kroger and Albertsons announce merger

THE WHAT? US retail giants Kroger and Albertsons have announced that they have entered into an agreement to merge.

THE DETAILS The deal will see Kroger acquire all of the outstanding shares of Albertsons common and preferred stock for an estimated total consideration of US$34.10 per share, placing an enterprise value of approximately US$24.6 billion on the grocery giant.

Together, the duo boast a portfolio of almost 5,000 stores, 66 distribution centers, 52 manufacturing plants, some 4,000 pharmacies and 2,015 gas stations.

THE WHY? Rodney McMullen, Kroger Chairman and Chief Executive Officer, who will continue serving as Chairman and CEO of the combined company, reveals, “We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders. Albertsons brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors. As a combined entity, we will be better positioned to advance Kroger’s successful go-to-market strategy by providing an incredible seamless shopping experience, expanding Our Brands portfolio, and delivering personalized value and savings. We’ll also be able to further enhance technology and innovation, promote healthier lifestyles, extend our health care and pharmacy network and grow our alternative profit businesses. We believe this transaction will lead to faster and more profitable growth and generate greater returns for our shareholders.”