The Kroger Company, an American retailer, is set to acquire all the 212 stores of Harris Teeter Supermarkets in a $2.5bn definitive merger agreement.
Under the all-cash arrangement, Kroger will pay $49.38 per share, besides assuming Harris Teeter’s debt of $100m.
Harris Teeter’s 212 supermarkets are located in southeastern and mid-Atlantic markets and in Washington DC.
The American retailer will also Harris Teeter’s distribution centres for grocery, frozen and perishable foods in Greensboro and Indian Trail, North Carolina and a dairy facility in High Point, North Carolina.
Harris Teeter board chairman and CEO Thomas Dickson said that following the merger, Harris Teeter will retain its banner, management teams, new store growth plan, and distribution and manufacturing facilities in North Carolina.
"As part of Kroger, Harris Teeter will be well equipped to continue to provide our customers outstanding quality and customer service as well as excellent value in an increasingly competitive market," added Dickson.
The merged company will operate 2,631 supermarkets and employ over 368,300 associates across 34 US states and the District of Columbia.
Kroger chairman and CEO David Dillon said the acquisition is a strategic financial investment and it also represents a significant opportunity for the company’s stakeholders.
"We look forward to bringing together the best of Kroger and Harris Teeter while continuing to operate and grow the Harris Teeter brands. Together, we can continue to deepen our connections with customers across all of our markets," added Dillon.
The deal is subject to closing conditions, including approval by Harris Teeter shareholders and regulatory approval.
Image: The merged entity will operate 2,631 supermarkets across 34 states and the District of Columbia. Photo courtesy of The Kroger Company.