Kroger and Roundy's to Merge in $800 Million Deal

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Kroger and Roundy’s to merge in $800 million deal

November 11, 2015

Supermarket operator Kroger Co., based in Cincinnati, will purchase all outstanding shares of Milwaukee-based retailer Roundy’s in a merger deal valued at $800 million that was announced Nov.

11.

The $3.60 per share that Kroger will pay represents a 65 percent premium over the per-share price of Roundy’s stock at the close of trading Nov. 10.

Roundy’s will operate as a subsidiary of the Kroger Co. and will be led by current members of Roundy’s senior management. Its headquarters will remain in Milwaukee.

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"We are delighted to welcome Roundy's to the Kroger family," Rodney McMullen, Kroger's chairman and chief executive officer, said in a Nov. 11 press release. "With a team of 22,000 talented associates, outstanding store locations, and a shared commitment to putting customers first, we are excited about Roundy's future growth.”

“We are excited about becoming part of The Kroger Co.,” Robert A. Mariano, chairman of the board, president and chief executive officer of Roundy’s Inc., said in the press release.

“Kroger’s scale, knowledge and experience allows us to accelerate the strategic initiatives we have invested in and makes us a more formidable competitor in the marketplace. This is a great win for our customers, communities, employees and our shareholders, and I personally look forward to continue to exceed customer and employee expectations.”

Combined, Kroger and Roundy’s will operate 2,774 supermarkets and employ over 422,000 associates across 35 states and the District of Columbia. The agreement gives Kroger an increased presence in the Chicago area with 34 Mariano’s locations operated by Roundy’s.

“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,” McMullen said in the press release. “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.”

Founded in Milwaukee in 1872, Roundy's operates 151 retail grocery stores and 101 pharmacies under the Copps, Pick 'n Save, Metro Market and Mariano's retail banners in Wisconsin and Illinois.

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.