On a combined basis, the companies delivered approximately $210 Billion in revenue, $3.3 Billion in Net Earnings and $11.6 Billion in adjusted EBIDA in fiscal 2021.
A newly created Albertsons Cos. subsidiary (Spin Co) would be spun off to Albertsons shareholders immediately prior to merger closing and operate as a standalone public company.
Kroger and Albertsons Cos. have agreed to work together to determine which stores would comprise Spin Co., as well as the pro forma capitalization at Spin Co. Spin Co is estimated to comprise between 100 and 375 stores.
The merger agreement between Kroger and Albertsons allows Kroger to walk away from the deal and pay a $600 Million breakup fee if the number of store divestitures exceeds 650.
Plan is to invest $500 Million in lowering prices from synergies to reduce prices for customers.
An incremental $1.3B will also be invested into Albertsons to enhance the customer experience.
The combined company will invest $1B to continue to raise associate wages and benefits after close.
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