Kroger Co. To Acquire Roundy’s Inc. For $800 Million

Kroger_Roundys_merger.564374414709dThe Kroger Co.  and Roundy’s, Inc. announced a definitive merger agreement under which Kroger will purchase all outstanding shares of Roundy’s for $3.60 per share in cash. The purchase price is estimated at around $800 million, according toSupermarket News.

The transaction price represents a premium of approximately 65 percent to the Roundy’s closing share price on Nov. 10, 2015. The terms of the agreement were unanimously approved by the boards of directors of both companies.

The transaction is not subject to any financing conditions.

“Mergers for Kroger always involve both parties bringing something to the table,” said Rodney McMullen, Kroger’s chairman and chief executive officer. “We admire what Bob Mariano has done with the Mariano’s banner in Chicago, where he has created an urban format that is resonating with customers and we expect to apply Roundy’s experience to our stores in urban areas around the country. Kroger’s scale and strong financial position will enable Roundy’s to reinvest in its home state of Wisconsin while continuing to grow in Chicago. Together, we are committed to investing in Roundy’s people, communities, stores and merchandising to deliver a fantastic customer experience that will create opportunities for associates, grow customer loyalty and revenue, and create value for shareholders.”

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