The Kroger Co. announced Wednesday that it has entered into a definitive agreement to acquire Giant Eagle, a family-owned grocery and pharmacy retailer, in a deal valued at $1.65 billion.
Under the agreement, Kroger will pay $1.25 billion in cash and assume approximately $400 million in outstanding liabilities. The acquisition has been unanimously approved by Kroger’s Board of Directors and is expected to close in 2027, pending regulatory approval and other customary closing conditions.
Giant Eagle operates approximately 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. While the company has stores in Maryland, there are no Giant Eagle locations in Montgomery County. Because of longstanding market agreements and trademark settlements, Giant Food operates throughout the Washington metropolitan area, while Giant Eagle’s Maryland presence is primarily farther north and west, with the closest stores to Montgomery County located in the Frederick area.
Kroger said the acquisition will expand its presence into neighboring markets and combine Giant Eagle’s grocery, pharmacy, loyalty and private label businesses with Kroger’s e-commerce, personalization and operational capabilities. The company also plans to extend its Zero Hunger | Zero Waste initiative into communities currently served by Giant Eagle.
As part of the regulatory review process, Kroger and Giant Eagle said they expect to divest a limited number of Giant Eagle stores. The proposed acquisition comes after Kroger’s planned merger with Albertsons was terminated in late 2024 following legal challenges. Unlike that transaction, Kroger said it expects only limited store divestitures as part of this acquisition.
