Kroger to Acquire Harris Teeter in $2.5 Billion Merger Agreement
The Kroger Co. and Harris Teeter Supermarkets, Inc. today announced a definitive merger agreement under which Kroger will purchase all outstanding shares of Harris Teeter for $49.38 per share in cash.
Under the tentative agreement, Harris Teeter stores will continue to operate under the Harris Teeter name as a subsidiary of Kroger. Key members of Harris Teeter's senior management team will also continue to lead the company from Harris Teeter's headquarters in Matthews, NC. According to Kroger, there are no plans to close any Harris Teeter stores.
Harris Teeter currently operates 212 store locations in the southeast and mid-Atlantic regions, including 136 in North Carolina, as well as stores in Virginia, South Carolina, Maryland, Tennessee, Delaware, Florida, Georgia and the District of Columbia.
"We are excited to welcome Harris Teeter to the Kroger family," said David B. Dillon, Kroger's Chairman and Chief Executive Officer. "Harris Teeter is an exceptional company with a great brand, friendly and talented associates, and attractive store formats in vibrant markets run by a first-class management team. They share our customer-centric approach to everything we do – from store format and merchandising to innovative loyalty programs. This is a financially and strategically compelling transaction and a unique opportunity for our shareholders and associates. 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."
Thomas W. Dickson, Chairman of the Board and Chief Executive Officer of Harris Teeter stated, "Harris Teeter has a long track record of creating shareholder value and this merger is the culmination of those efforts over many years. We are excited about becoming part of The Kroger Co., one of the best food retailers in the U.S. while maintaining the Harris Teeter banner, our management teams, our new store growth plan, our distribution and manufacturing facilities in North Carolina as well as our headquarters in Matthews, NC. 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."
A precise timeline for Kroger's acquisition of Harris Teeter has not yet been announced.