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Kroger to Buy Harris Teeter
CINCINNATI — Kroger Co. here said Tuesday it has agreed to acquire Harris Teeter Supermarkets for $49.38 per share in cash, or about $2.5 billion.
Donna Boss
July 9, 2013
2 Min Read
CINCINNATI -- Kroger Co. here said Tuesday it has agreed to acquire Harris Teeter Supermarkets for $49.38 per share in cash, or about $2.5 billion.
The transaction price represents a premium of 33.7% to the Harris Teeter closing share price on January 18, 2013, the day of the first media report that Harris Teeter was evaluating strategic alternatives. The terms of the agreement were approved by the boards of directors of both companies.
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Harris Teeter operates 212 supermarkets, primarily in the Carolinas, where Kroger does not have a significant presence. Harris Teeter also operates in the Washington, D.C,. area and other Mid-Atlantic states and had distribution centers for grocery, frozen and perishable foods in Greensboro, N.C., and Indian Trail, N.C., and a dairy facility in High Point, N.C. Harris Teeter had revenues of approximately $4.5 billion for fiscal year 2012.
Read more: Charlotte's Food Retailing Hinges on Harris Teeter
David Dillon
“We are excited to welcome Harris Teeter to the Kroger family,” said David B. Dillon, Kroger's chairman and chef executive officer. “Harris Teeter is an exceptional company with a great brand, friendly and talented associates, and attractive store formats in vibrant markets run by a first-class management team. They share our customer-centric approach to everything we do – from store format and merchandising to innovative loyalty programs. This is a financially and strategically compelling transaction and a unique opportunity for our shareholders and associates. We look forward to bringing together the best of Kroger and Harris Teeter while continuing to operate and grow the Harris Teeter brands. Together, we can continue to deepen our connections with customers across all of our markets."
Kroger will finance the transaction with debt. Kroger also intends to assume Harris Teeter’s outstanding debt of approximately $100 million.
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