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Two major U.S. supermarkets will combine forces after a unanimous all-cash merger agreement was reached between the boards of Kroger and Albertsons.
Kroger, the second largest grocery store chain, purchased the fourth largest, Albertsons, for an estimated total enterprise value of $24.6 billion, the company announced in a news release Friday. «This combination will expand customer reach and improve proximity to deliver fresh and affordable food to approximately 85 million households with a premier omnichannel experience.»
Combined, the stores employ more than 700,000 people across 5,000 stores.
The companies said they plan to continue with their shared track record to lower prices, enhance customer experience and increase associate wages and benefits.
In a statement, Kroger Chairman and CEO Rodney McMullen said, «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.»
He added that «as a combined entity, we will be better positioned to advance Kroger’s successful go-to-market strategy» with respect to their seamless shopping experience, portfolio of brands, and personalized value and savings.
