The Kroger Co. has reached a definitive agreement to acquire family-owned food and pharmacy retailer Giant Eagle for $1.65 billion, the company announced on Wednesday, July 1, 2026.
The total transaction includes $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities.
The acquisition, unanimously approved by Kroger's board of directors, is expected to close in 2027 pending customary regulatory approvals.
Strategic Expansion
Giant Eagle operates 197 supermarkets and 11 standalone pharmacies across western Pennsylvania, northern Ohio, West Virginia, Maryland, and Indiana, generating roughly $9 billion in annual sales.
Kroger currently runs thousands of grocery stores nationwide but has only two locations in Northeast Ohio.
To secure federal clearance, both chains anticipate divesting a limited number of Giant Eagle stores before the deal closes.
Kroger shares fell nearly 3% in premarket trading following the announcement.
“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's chief executive officer.
Foran, who became Kroger CEO in February after serving as a Walmart executive, said the integration will help expand the company's regional customer base.
“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,” Foran added.
Kroger plans to finance the entire transaction with cash while maintaining its target net total debt to adjusted EBITDA ratio of 2.3 to 2.5x.
Giant Eagle leadership welcomed the deal.
“Today's announcement marks an exciting next chapter for our Team Members, customers, vendors and community partners,” said Bill Artman, Giant Eagle's CEO.
Artman noted the partnership will help stabilize supply chains and improve consumer experiences across existing store networks.
“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,” Artman said.
Kroger intends to introduce its Zero Hunger | Zero Waste initiative to the newly acquired communities.
RBC Capital Markets advised Kroger on the transaction, while Wells Fargo advised Giant Eagle.
