US: Kroger buys Harris Teeter in $2.5 billion grocery deal
The $2.5 billion deal is one of the largest in the grocery sector in recent years. Kroger is taking on debt to finance the transaction, in addition to assuming around $100 million in debt from Harris Teeter, based in Matthews, N.C. Harris Teeter says its revenues for 2012 totaled around $4.5 billion.
The combined company will operate more than 2,600 stores in 34 states and Washington, D.C. There are currently no plans to close any stores, the two companies said in a statement issued today. Their integration plan calls for Harris Teeter to operate its existing 212 stores as a subsidiary of Kroger, with each company maintaining its own headquarters. Kroger is based in Cincinnati.
A potential buyout of Harris Teeter had been discussed since the beginning of this year, when its market capitalization stood at $2.1 billion. As in February, Harris Teeter has seen its sales grow in each of the past 10 years. At the time, a target share price of $55 a share was seen as a possibility.
Source: npr.org
