Kroger gains 212 stores in Washington, D.C., the Mid-Atlantic states and the southeast in what the company’s press release calls “high-growth markets, vacation destinations, and university communities.”
The acquisition will be financed with debt and includes Kroger’s assumption of $100 million existing debt at Harris Teeter. Kroger expects the acquisition to add $0.06 to $0.09 to earnings in the first full year after the merger is completed. The company also said it expects to see cost savings of $40 million to $50 million in the next three or four years based on its beefed-up scale. Kroger notes its “strong history of achieving synergy goals. Being patient in achieving those goals reduces the risk of the transaction and sets the stage for sustainable growth.”
Shares of Harris Teeter are up about 2% in premarket trading this morning, at $49.49, which is above the top of its current 52-week range of $35.25 to $48.96.
Kroger’s shares are inactive this morning, having closed last night at $36.19 after posting a new 52-week high yesterday. The stock’s 52-week range is $20.98 to $36.29.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
