NEW YORK — Kroger plans to buy fellow grocer Roundy’s for about $178 million to expand in the Midwest.
Roundy’s Inc., based in Milwaukee, owns about 151 stores in Wisconsin and Illinois. Its stores include Copps, Mariano’s, Metro Market and Pick ‘n Save. Kroger said the deal will give it a presence in new areas.
Cincinnati-based Kroger Co. operates more than 2,600 stores in 34 states. It owns several supermarket chains, including City Market, Ralphs and Harris Teeter.
Kroger said it will pay $3.60 for each share of Roundy, a 61 percent premium from Roundy’s closing price of $2.18 on Tuesday. Including debt, Kroger valued the deal at $800 million. The deal is expected to close before the end of the year.
Shares of Roundy’s jumped 64 percent in morning trading Wednesday.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info