Better than Albertson’s, Kroger agrees to acquire Giant Eagle for $1.65 billion

The Kroger Co. (KR) has entered into a definitive agreement to acquire Giant Eagle, Inc., a family-owned grocery and pharmacy retailer, for a total purchase price of $1.65 billion, according to a press release issued July 1, 2026.

The deal comprises $1.25 billion in cash and the assumption of approximately $400 million in outstanding liabilities. Kroger’s board of directors unanimously approved the transaction.

Giant Eagle operates 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana, with approximately $9 billion in annual sales.

Kroger plans to fund the transaction with cash on hand and expects to maintain its net total debt to adjusted EBITDA ratio within a target range of 2.3 to 2.5 times following the close. The company also stated it expects to maintain its dividend, subject to board approval, and continue its previously announced $2 billion share repurchase program.

Kroger said it expects the transaction to be accretive to adjusted earnings per diluted share in the second full year after closing, excluding one-time transaction and integration costs.