Kroger to buy Roundy's for $178M to expand in Midwest
NEW YORK (AP) -- Kroger plans to buy fellow grocer Roundy's for about $178 million to expand in the Midwest.
Roundy's Inc., based in Milwaukee, owns about 151 stores in Wisconsin and Illinois. Its stores include Copps, Mariano's, Metro Market and Pick `n Save. Kroger said the deal will give it a presence in new areas.
Cincinnati-based Kroger Co. operates more than 2,600 stores in 34 states. It owns several supermarket chains, including City Market, Ralphs and Harris Teeter.
Kroger said it will pay $3.60 for each share of Roundy, a 61 percent premium from Roundy's closing price of $2.18 on Tuesday. Including debt, Kroger valued the deal at $800 million. The deal is expected to close before the end of the year.
Shares of Roundy's jumped 64 percent in morning trading Wednesday.