Kroger to buy Harris Teeter for about $2.44B in cash, expand store base whole reducing costs

CINCINNATI – Kroger says it has agreed to buy Harris Teeter Supermarkets Inc. for about $2.44 billion in cash.

Kroger will pay $49.38 for each of its rival supermarket chain’s shares. The price represents a 2 per cent increase over the company’s Monday closing stock price. The deal has been approved by both companies’ boards.

Matthews, N.C.-based Harris Teeter operates 212 stores in southeastern and mid-Atlantic markets, along with a pair of distribution centres and a dairy facility. Its fiscal 2012 revenue totalled about $4.5 billion.

Cincinnati-based Kroger Co. says it expects the deal to result in cost savings of $40 million to $50 million over the next three to four years.

Kroger will finance the deal with debt and plans to assume Harris Teeter’s outstanding debt of about $100 million.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.

Related Articles