Industry News

Kroger makes an $800 Million acquisition of Roundy’s

 A Cincinnati based retailer, Kroger, has completed the acquisition of Roundy’s for USD800 Million. The deal will provide Kroger an opportunity to expand and influence the hypermarkets in few of the major cities.

This acquisition adds 151 stores, 101 pharmacies and a sales revenue of $4 billion to the Kroger’s portfolio. Now, Kroger owns 2,774 stores across 35 states with total staff strength of 422,000 workers and with Roundy’s sales, Kroger’s total revenue will be increased by 3%.

The deal also expands the presence of Kroger in an innovative store format in Chicago where Roundy’s is operating 34 stores under the brand name of Mariano’s. Kroger’s merchandising will be further strengthened by Roundy’s complementary market.

Kroger bought all the outstanding shares of Roundy’s at $3.60 and the transaction would add on to Kroger’s current $11.3 billion in debt.

Roundy’s headquarters will remain Milwaukee and all the stores remain open and will continue to be led by Roundy’s management.

According to TechSci Kroger would be hugely benefitted by the Roundy’s downtown stores operating in the Chicago under the banner of Mariano’s. It would help Kroger to set its footprints in new geographies. Kroger can learn from Roundy’s operations and can also apply those in Cincinnati stores. This deal would also help Roundy’s to push its strategic initiatives. Thus, enhance customer experience.