Kroger Enters Merger Agreement With Albertsons in $24.6B Deal; Rodney McMullen, Vivek Sankaran, and Chan Galbato Comment
CINCINNATI, OH, & BOISE, ID - Kroger and Albertsons have entered a definitive agreement to merge companies. Kroger agreed to acquire all outstanding shares of Albertsons in a deal valued at $24.6 billion, or $34.10 a share. Together, Albertsons Cos. and Kroger currently employ more than 710,000 associates and operate a total of 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies, and 2,015 fuel centers.
"We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities, and shareholders," said Rodney McMullen, Kroger Chairman and Chief Executive Officer, who will continue serving as Chairman and CEO of the combined company, according to a press release. "Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors. As a combined entity, we will be better positioned to advance Kroger's successful go-to-market strategy by providing an incredible seamless shopping experience, expanding Our Brands portfolio, and delivering personalized value and savings. We'll also be able to further enhance technology and innovation, promote healthier lifestyles, extend our health care and pharmacy network, and grow our alternative profit businesses. We believe this transaction will lead to faster and more profitable growth and generate greater returns for our shareholders."
The merger, Kroger noted, creates a network spanning 48 states and the District of Columbia.
The release also addressed plans for the combined company to drive profitable growth and sustainable value for all stakeholders.
"We have been on a transformational journey to evolve Albertsons Cos. into a modern and efficient omnichannel food and drug retailer focused on building deep and lasting relationships with our customers and communities. I am proud of what our 290,000 associates have accomplished, delivering top-tier performance while furthering our purpose to bring people together around the joys of food and to inspire well-being. Today's announcement is a testament to their success," said Vivek Sankaran, Chief Executive Officer of Albertsons Cos. "At Albertsons Cos., we are guided by an ambition to create customers for life. Together with Kroger, our combined iconic banners will be able to provide customers with even more value and greater access to fresh food and essential pharmacy services. Given the similarities in the culture and values at Kroger and Albertsons Cos., I am confident that the combination will also have a positive impact on our associates and the communities we are proud to serve. We look forward to working together with Kroger to capture the compelling opportunities ahead."
Co-Chair of the Albertsons Cos. Board of Directors and Chief Executive Officer of Cerberus Operations Chan Galbato called today’s announcement a mark of the “successful outcome of the Board-led review of strategic alternatives Albertsons Cos. announced in February."
"This transaction with Kroger provides substantial value to shareholders and exciting opportunities for associates to be part of a combined organization with the ability to better support the lives and health of millions of Americans," Galbato concluded.
To read the full release, including enhancements and coming strategic additions, click here.
Our team at AndNowUKnow will continue to follow the deal as further updates are revealed.