CINCINNATI & MILWAUKEE -- The Kroger Co. announced today that it will purchase all outstanding shares of grocery-store retailer Roundy's Inc. for $3.60 per share in cash.
The transaction price represents a premium of approximately 65% 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 Roundy's acquisition brings to Kroger an expanded footprint with a base of 151 stores and 101 pharmacies in new geographies including Milwaukee, Madison and Northern Wisconsin, which are served under the Pick 'n Save, Copps and Metro Market banners. The merger also expands Kroger's presence with an innovative store format in the Chicagoland area, where Roundy's operates 34 stores under the Mariano's banner.
Roundy's also operates two distribution centers in Oconomowoc and Mazomanie, WI, and a commissary in Kenosha, WI. Roundy's had revenues of nearly $4.0 billion for fiscal year 2014.
Kroger, one of the world's largest retailers, employs nearly 400,000 associates who serve customers in 2,623 supermarkets and multi-department stores in 34 states and the District of Columbia under two dozen local banner names including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry's, Harris Teeter, Jay C, King Soopers, QFC, Ralphs and Smith's. The company also operates 781 convenience stores, 327 fine jewelry stores, 1,350 supermarket fuel centers and 37 food processing plants in the United States.
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