$800M Takeover: Kroger Buys Roundy’s, Adds 151 Stores
Kroger will buy Roundy’s Supermarkets for $800M in a takeover that will add 151 stores and 101 pharmacies to its roster, bringing the largest conventional supermarket chain in the US to Wisconsin and Chicago.
Kroger CEO Rodney McMullen said the acquisition helps strengthen its presence in urban areas.
"We admire what [Roundy’s CEO] Bob Mariano has done with the Mariano’s banner in Chicago, where he has created an urban format that is resonating with customers,” Rodney told SupermarketNews.
The all-cash deal was approved by both company boards and is expected to close before year-end. Kroger will acquire all of Roundy’s shares at $3.60 a share, a 65% premium to Round’s Tuesday closing price.
Roundy’s will continue operating its stores as a subsidiary of Kroger and will continue to be led by Roundy’s senior management, while Kroger looks to refinance the $646M in debt on Roundy’s balance sheet. [SMN]