February 26, 2016

Kroger purchases Roundy’s Supermarkets for $800M

Kroger representatives announced it will buy Roundy’s Supermarkets in an $800 million all-cash deal. The merger will expand Kroger’s presence throughout the Chicagoland area with 34 stores operating under the Mariano’s banner, along with 151 store locations and 101 pharmacies in new locations including Milwaukee, Madison and Northern Wisconsin, which operate under the Pick ‘n Save, Copps and Metro Market banners.

Together, Kroger and Roundy’s will operate 2,774 supermarkets and employ more than 422,000 associates in 35 states and the District of Columbia. Roundy’s will continue to operate its stores as a subsidiary of Kroger and will continue to be led by key members of Roundy’s senior management team. Company officials said there are no plans to close stores, and associates will have employment opportunities with both companies. Roundy’s headquarters will remain in Milwaukee.

Kroger currently employs approximately 400,000 associates and has 2,623 supermarkets and multi-department stores in 34 states and the District of Columbia. Kroger has 24 banners; City Market, Dillons, Food 4 Less, Fred Meyer, Fry’s, Harris Teeter, Jay C, King Soopers, QFC, Ralphs and Smith’s.  Additionally, Kroger operates 781 convenience stores, 327 fine jewelry stores, 1,350 supermarket fuel centers and 37 food processing plants in the US.

Roundy’s has $4 billion in sales and more than 22,000 employees. Roundy’s operates 151 retail grocery stores and 101 pharmacies under the Copps, Pick ‘n Save, Metro Market and Mariano’s retail banners in Wisconsin and Illinois.

Representatives from Kroger said the company will finance the transaction with debt and refinance Roundy’s debt of $646 million based on market conditions. Kroger anticipates cost savings to accumulate to $40 million over time, which will be reinvested into growing the company.

The transaction is anticipated to close by December 2015.



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