Kroger Closes $800 Million Roundy's Acquisition
CINCINNATI, OH - The wait is over—the buyout of the season is complete. Kroger announced today that it has successfully completed its nearly $800 million buyout of Roundy’s chain of stores.
"This merger blends Roundy's complementary markets with Kroger's strengths in scale and merchandising,” shared Rodney McMullen, Kroger's Chairman and CEO. “Our future together is bright, and we look forward to learning from each other as partners. Most of all, we want to welcome each of Roundy's more than 22,000 associates to the Kroger family of stores."
Each outstanding share of Roundy's common stock (approximately 33,144,128 shares) was purchased for $3.60 per share in cash, according to a press release, and the tender offer expired at 11:59 p.m., Eastern Standard Time, on December 17, 2015. Roundy’s President and CEO, Bob Mariano, will continue to serve in his role at the company, despite the change in ownership. He has served as Chairman, President and CEO for the company since 2002.
"We look forward to bringing together the best of Roundy's and Kroger for our customers and associates," said Mariano. "Our merger with Kroger will help us continue to exceed our customers' expectations."
Following completion of the merger, Roundy's shares will cease to be traded on the New York Stock Exchange, which is expected to take effect later today.
With this addition, Kroger inherits 151 stores and 101 pharmacies in new regions, including Milwaukee, Madison, Northern Wisconsin, under the Pick 'n Save, Copps, and Metro Market banners, plus two Wisconsin-based distribution centers.
