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.
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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.
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“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.
