Kroger inks merger deal with Harris Teeter
Cincinnati-based Kroger is taking over Harris Teeter Supermarkets in a transaction valued at about $2.5 billion. The merger means Kroger will buy all outstanding shares of Harris Teeter for $49.38 per share in cash.
Harris Teeter has 212 stores in the southeastern and mid-Atlantic markets and in Washington, D.C. Those stores will maintain the Harris Teeter brand name. The company posted revenues of approximately $4.5 billion for the 2012 fiscal year.
In a release, Kroger Chairman and Chief Executive Officer David B. Dillion says:
"We are excited to welcome Harris Teeter to the Kroger family. Harris Teeter is an exceptional company with a great brand, friendly and talented associates, and attractive store formats in vibrant markets run by a first-class management team. They share our customer-centric approach to everything we do – from store format and merchandising to innovative loyalty programs. This is a financially and strategically compelling transaction and a unique opportunity for our shareholders and associates. We look forward to bringing together the best of Kroger and Harris Teeter while continuing to operate and grow the Harris Teeter brands. Together, we can continue to deepen our connections with customers across all of our markets."
The Kroger Co. says it expects the deal will generate cost savings of $40 million to $50 million during the next 3-4 years.
Harris Teeter is based in Matthews, NC.