Kroger, Albertsons Finally Seal The Rumored Merger Deal: See Highlights

  • Putting all rumors at rest, Kroger Co KR and Albertsons Companies Inc ACI have agreed to merge to establish a national footprint. 
  • The combination will expand customer reach and improve proximity to deliver fresh and affordable food to approximately 85 million households with a premier omnichannel experience.
  • Kroger will acquire Albertsons for $34.10 per share, implying a total enterprise value of approximately $24.6 billion, including approximately $4.7 billion of Albertsons' net debt. 
  • As part of the transaction, Albertsons will pay a special cash dividend of up to $4 billion.
  • The cash component of the $34.10 per share consideration will be reduced by approximately $6.85 per share. 
  • The companies believe the acquisition will help them be better positioned to relieve shoppers' inflationary pressures with a combined portfolio of approximately 34,000 total private label products across premium, natural and organic, and opening price point brands. 
  • Combined, the companies delivered approximately $210 billion in revenue, $3.3 billion in net earnings, and $11.6 billion of adjusted EBITDA in the fiscal year 2021.
  • The combined company expects to achieve approximately $1 billion in annual run-rate synergies.
  • Price Action: ACI stock is down 2.24% at $27.99, and KR shares are down 3.37% at $45 during the premarket session on the last check Friday.
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