Kroger and Albertsons Sell Select Stores and Assets

Kroger and Albertsons have recently reached a definitive agreement with C&S Wholesale Grocers for the sale of certain stores and assets. This strategic move is part of the grocery giants’ efforts to complete their proposed acquisition. C&S Wholesale Grocers, known for operating Grand Union grocery stores and the Piggly Wiggly franchise, will acquire these select stores and assets from Kroger for an all-cash offer of approximately $1.9 billion.

In addition, Kroger may require C&S to purchase up to an additional 237 stores in specific geographical areas as part of the regulatory clearance process. If more stores are added to the transaction, C&S will pay an increased amount to Kroger accordingly.

The divestiture includes a total of 413 stores, including renowned brands such as QFC, Mariano’s, and Carrs. Furthermore, any stores currently operating under these banners but retained by Kroger will be re-branded with either the Kroger or Albertsons banner once the transaction is completed. The agreement also encompasses other valuable assets such as distribution centers, offices, and private label brands.

It’s worth noting that Kroger’s acquisition of rival Albertsons for approximately $20 billion last year has raised concerns and garnered attention from politicians and workers alike. The Federal Trade Commission (FTC) has also requested further information regarding this planned merger. Despite these inquiries, Kroger has stated that the merger remains on track and is expected to conclude in early 2024.