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Kroger Enters Merger Agreement With Albertsons in 24.6B-Dollar Deal; Rodney McMullen, Vivek Sankaran, and Chan Galbato Comment

Kroger Enters Merger Agreement With Albertsons in 24.6B-Dollar Deal; Rodney McMullen, Vivek Sankaran, and Chan Galbato Comment


CINCINNATI, OH, & BOISE, ID
Friday, October 14th, 2022

News of a retail merger hit the newswire on October 14 as Kroger and Albertsons entered into a definitive agreement. Recently, Kroger agreed to acquire all outstanding shares of Albertsons in a deal valued at $24.6 billion, or $34.10 a share, effectively merging the companies.

Rodney McMullen, Chairman and Chief Executive Officer, Kroger“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.”

Combined, Albertsons 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.

Kroger and Albertsons have entered a definitive agreement to merge companies in a $24.6 billion deal

The merger, Kroger noted, creates a network spanning 48 states and the District of Columbia. Plans are in store for the combined company to drive profitable growth and sustainable value for all stakeholders.

Vivek Sankaran, Chief Executive Officer, Albertsons“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, CEO of Albertsons. “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 Board of Directors and Chief Executive Officer of Cerberus Operations Chan Galbato also gave his thoughts on the merger.

Chan Galbato, Co-Chair of the Albertsons Cos. Board of Directors and Chief Executive Officer, Cerberus Operations“Today’s announcement marks the successful outcome of the Board-led review of strategic alternatives Albertsons Cos. announced in February,” said Galbato, Co-Chair of the Albertsons Cos. Board of Directors and Chief Executive Officer of Cerberus Operations. “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.”

To read the full release, including enhancements and coming strategic additions, click here.

For more news in the retail landscape, keep a tab open for Deli Market News.

KrogerAlbertsons
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See the Difference Cooper® Sharp Makes. Get Cooper®DePalo Foods StrombolisVeroni - 100 percent humanely raised - Authentic Italian charcuterieCheese that stands out from the herd. And stands out on the shelves. Beano's - First in Deli. Always Delicious.Simple done right

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The Kroger Co. spans many states with store formats that include grocery and multi-department stores, convenience stores and mall jewelry stores. We operate under nearly two dozen banners, all of...

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