Kroger to buy Harris Teeter chain in $2.4B deal. The nation's largest grocery store chain is getting even bigger -- and possibly, tonier.
Kroger said Tuesday it's buying Harris Teeter Supermarkets in a $2.4 billion deal, which will increase by three the number of states in which it operates to 34.
Kroger said Tuesday it's buying Harris Teeter Supermarkets in a $2.4 billion deal, which will increase by three the number of states in which it operates to 34.
The deal will be the fourth-largest acquisition of a North American food retailer in the past decade. It also would be Kroger's biggest takeover since 1998, when it bought the Fred Meyer food and merchandise store chain in the Northwest for more than $12 billion, according to financial data service Bloomberg.
Kroger is getting a group of good-quality stores in good locations with little overlap. Matthews, N.C.-based Harris Teeter has 212 stores in what Kroger called attractive, high-growth markets in the eight Southeast and Mid-Atlantic states and Washington, D.C., and about $4.5 billion in revenue for fiscal 2012.
The two grocery chains are very different, but Kroger CFO Michael Schlotman said in a conference call early Tuesday that they should be complementary. Kroger will learn a lot about fresh food categories, which are more profitable, he said. Harris Teeter will benefit from Kroger's purchasing power, information systems and loyalty programs.
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