Details for the agreement, looking at the numbers. Merger would combine the number one and two grocery retailers in the US.
Kroger said it will acquire Albertsons for $34.10 a share, a total enterprise value of approximately $24.6 Billion.
It will serve 85 million households nationwide in 48 states.
The combined company will consist of 4,996 stores with 710,000 associates.
In addition, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers.
Current Market Share in U.S.: Kroger 9.9%, Albertsons 5.7% for an estimated 15.6% share compared to Walmart's 20.9% (Excluding Sam's Club).
Merger assumes $4.7B Albertsons NET Debt.
As part of the transaction, Albertsons will pay a Special Cash Dividend of up to $4 Billion to its shareholders.
The merger expects to close in early 2024.
Rodney McMullen will continue to serve as Chairman and CEO and Gary Millerchip will continue to serve as CFO of the combined company.
Plan for Divested Stores, Regulatory Hurdles, Dividend Payout and other News to follow in future posts.
SOURCES: Supermarket News, Progressive Grocery, Winsight Grocery Business, Drug Store News, Grocery Dive, The Shelby Report