Kroger agrees to buy grocery chain Roundy's in $800 million deal, including debt

[Retail Fan+ (Justin Hill)]

Published: Nov 11, 2015 8:42 a.m. ET

By Ciara Linnane
Corporate news editor, MarketWatch

Supermarket chain The Kroger Co. KR, -0.64% said Wednesday it has agreed to buy grocery chain Roundy's Inc. RNDY, +63.76% in a deal valued at about $800 million, including debt. Kroger will pay $3.60 per Roundy's share in cash, for a premium of about 65% over Roundy's closing share price on Nov. 10. It will finance the deal with debt, and will refinance Roundy's existing debt of $646 million, the companies said in a joint statement. The new entity will operate 2,774 supermarkets and employ more than 422,000 people across 35 states and the District of Columbia. Kroger expects it to boost earnings in its first full year after closing. The deal is expected to close by year-end. Roundy's shares were halted in premarket trade, but are down 55% in the year so far, while the S&P 500 has gained about 1.1%.

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Brands owned by each company:


Kroger

Supermarkets

* Baker's Supermarkets (Omaha, Nebraska)
* City Market (Colorado, Wyoming, Utah, Mexico)
* Dillons Food Stores (Kansas, Missouri)
* Fry's Food & Drug (Arizona)
* Gerbes Supermarkets (Central Missouri)
* Harris Teeter (North Carolina, South Carolina, Virginia, Georgia, Florida, Maryland, Delaware, and the District of Columbia)
* Jay C (Southern Indiana)
* King Soopers (Colorado, Wyoming)
* Kroger (Alabama, Arkansas, Georgia, Indiana, Illinois, Kentucky, Louisiana, Michigan, Mississippi, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Texas, Virginia, West Virginia)
* Owen's (Northeastern Indiana)
* Pay Less Supermarkets (Central Indiana)
* QFC (Oregon, Washington State)
* Ralphs (Southern California)
* Scotts (Fort Wayne, Indiana)
* Smith's (Arizona, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming)


Hypermarkets

* Fred Meyer (Alaska, Idaho, Oregon, Washington)


Price Impact Stores

* Food 4 Less (Southern California; Chicago, Illinois; Northwest Indiana)
* Foods Co. (Northern California)
* Ruler Foods (Indiana, Illinois, Ohio, Kentucky, Missouri, Tennessee)

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Roundy's

* Pick 'n Save (Wisconsin)
* Copps Food Center (Northeast Wisconsin, Madison, Wisconsin)
* Metro Market (Milwaukee, Wisconsin; Madison, Wisconsin)
* Mariano's Fresh Market (Chicago, Illinois)