Albertsons Companies Inc. (NYSE: ABS) and The Kroger Co. (NYSE: KR) today announced that they have entered into a definitive merger agreement under which Albertsons will acquire all of the outstanding shares of King Soopers parent company, Kroger.
The transaction, valued at approximately $8.7 billion, including the assumption of Kroger’s debt, will create the largest grocery store chain in the United States with more than 2,700 stores and over $280 billion in annual revenue. The companies expect the transaction to be accretive to Albertsons’ earnings per share in the first full year after closing and to generate annual cost synergies of approximately $400 million within three years after closing.
The transaction has been approved by the boards of directors of both companies and is expected to close in the second half of 2019, subject to customary closing conditions, including regulatory approvals and approval by Kroger shareholders.
Albertsons Companies Inc. is one of the largest food and drug retailers in the United States with 2,300 stores across 35 states and Washington D.C. Albertsons Companies is committed to helping people lead healthier lives by making a difference one neighborhood at a time. We operate stores under 19 banners including Albertsons, Safeway, ACME Markets, Jewel-Osco, Vons, Pavilions, Randalls, Tom Thumb, Shaw’s, Star Market, United Express®, United®, Carrs®, Haggen®, Haggen Northwest Fresh®, Albertsons Market®, Lucky®, Super Saver®, Amigos®, Market Street®, Pak ‘n Save®, Smart Foodservice® Warehouse Stores and Essentials™ banner stores.
The Kroger Co., founded in 1883 in Cincinnati, Ohio is one of the world’s largest grocery retailers with fiscal 2018 sales of $121.1 billion. The company employs nearly half a million associates who serve eight million customers daily through a seamless digital shopping experience and 2,800 retail food stores under a variety of local banner names in 35 states and the District of Columbia.
Did Albertsons buy Kings?
Yes – Albertson’s has acquired King Soopers parent company, Kroger.
