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Kroger Acquires Chicago Grocery Chain

Published by: Frank Galvano on 11th Nov 2015 | View all blogs by Frank Galvano

Kroger Acquires Chicago Grocery Chain

The nation's biggest supermarket chain got bigger Wednesday as the Kroger Co. agreed to purchase a Chicago area grocery chain named Roundy's, which operates 34 Mariano's grocery stores. The purchase price of $800 million, or $3.60 a share, represents a healthy 65 percent premium over Tuesday's close, when Roundy's shares were trading at $2.19 per share. According to a press release, the boards of directors at Roundy's and Cincinnati-based Kroger have already approved the merger. In a statement, Roundy's chairman Bob Mariano lauded the merger with Kroger, calling it a “great win for our customers, communities, employees and our shareholders.” Marianio's stores will be run as a Kroger subsidiary, lead by senior members of Roundy's management team. No store closings are expected to result from the merger.

With 2,623 supermarkets across 34 states, Kroger is the nation's largest supermarket chain, but it has failed to establish a presence in Chicago. The company currently only runs a handful of Food 4 Less discount grocers, and attempts to move in have failed in the past. In addition to its namesake stores, Kroger also operates supermarkets under the names City Market, King Sooper and Harris Teeter, plus nearly 800 convenience stores and 325 jewelry stores. All those stores amounted to full-year sales of $108.5 billion last year, making Kroger the second largest retailer in the US behind Wal-Mart.



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