Cincinnati-based Kroger has entered a deal to buy supermarket chain Giant Eagle for $1.65 billion. The companies announced the agreement Wednesday, July 1.
"Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty," Kroger CEO Greg Foran said in a release. "We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into attractive adjacent markets."
Pittsburgh-based Giant Eagle, Inc. operates more than 200 supermarkets and standalone pharmacies across western Pennsylvania, north central Ohio, northern West Virginia, Maryland and Indiana. Its annual sales are estimated at around $9 billion.
According to the release, the purchase price of $1.65 billion includes $1.25 billion in cash consideration, and Kroger will assume around $400 million in outstanding liabilities. The transaction is expected to close in 2027, subject to regulatory clearance.
Giant Eagle CEO Bill Artman calls the announcement an exciting next chapter for employees and customers.
"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 says.
Kroger says it will finance the transaction with cash. For investors, the company notes it expects "to maintain its dividend, subject to board approval, continue its previously announced $2 billion share repurchase program, and preserve financial flexibility to invest in its strategic priorities and core business."
Kroger deals past and present
This isn't the first time the two brands have merged. Giant Eagle began as Eagle Grocery in 1918, founded by the Goldstein, Porter and Chait families. They agreed to sell their business to Kroger in 1925. Then, in 1931, those three families joined with the Moravitz and Weizenbaum families — who'd been running a small chain called OK Grocery — to create Giant Eagle. The first Giant Eagle supermarket opened in 1936.
This is Kroger's first major acquisition deal since a planned $24.6 billion merger with rival Albertsons fell apart in December 2024 over antitrust concerns. It also comes just a few months into Foran's tenure as CEO. He took over in February from interim CEO Ron Sargent, who'd been in charge since March 2025, when then-chairman and CEO Rodney McMullen resigned, citing issues related to his personal conduct.
Kroger operates more than 2,700 supermarket and multi-department stores under 20 brands, including Ralphs, Harris Teeter, Fred Meyer and King Soopers, across 35 states and the District of Columbia.
While Kroger and Albertsons are the largest grocery chains, Walmart has the largest share of the grocery market.
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