Kroger is buying out the Roundy's grocery chain for $3.60 per share, or about $178 million. Kroger values the total deal at $800 million. Roundy's operates primarily in Milwaukee, Madison and Northern Wisconsin under the Pick 'n Save, Copps and Metro Market banners. The deal also includes 34 Mariano's locations in the Chicago area.
According to a news release, Roundy's generated nearly $4.0 billion in revenues for fiscal year 2014.
"We are delighted to welcome Roundy's to the Kroger family," said Rodney McMullen, Kroger's chairman and chief executive officer. "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."
Following the merger, Kroger will operate 2,774 supermarkets and employ more than 422,000 associates across 35 states and the District of Columbia. The company says it doesn't plan to close any stores.
The deal is slated to close before the end of this year.
