Kroger to buy Harris Teeter for about $2.44B


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Submitted: Tue, 07/09/2013 - 12:07pm
Updated: Tue, 07/09/2013 - 10:00pm By:

CINCINNATI (AP) — Kroger says it has agreed to buy Harris Teeter Supermarkets Inc. for about $2.44 billion in cash.

Kroger will pay $49.38 for each of its rival supermarket chain’s shares. The price represents a 2 percent increase over the company’s Monday closing stock price. The deal has been approved by both companies’ boards.

Matthews-based Harris Teeter operates 212 stores in southeastern and mid-Atlantic markets, along with a pair of distribution centers and a dairy facility. Its fiscal 2012 revenue totaled about $4.5 billion.

Cincinnati-based Kroger Co. says it expects the deal to result in cost savings of $40 million to $50 million over the next three to four years.

Kroger will finance the deal with debt and plans to assume Harris Teeter’s outstanding debt of about $100 million.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

14 Comments

  • Guestpep says:

    Even though they are merging, according to their press release, Harris Teeter will continue to operate as Harris Teeter.

    “Together the company will operate 2,631 supermarkets and employ over 368,300 associates across 34 states and the District of Columbia. Following closing, Harris Teeter will continue to operate its stores as a subsidiary of The Kroger Co. and will continue to be led by key members of Harris Teeter’s senior management team. There are no plans to close stores, and associates will continue to have employment opportunities with both companies. Kroger headquarters will remain in Cincinnati, and Harris Teeter will keep its headquarters in Matthews, NC. ”

    http://www.harristeeter.com/about_us/press_room/press_releases.aspx?article=915

  • Guest2020 says:

    I’ve heard that story before. I worked for a local chain that was bought out by a New England company. They promised to keep the name and said that the senior management would be safe. They changed the name almost immediately and the senior management was the first to go followed by major overhauls in store management.

    I hope the people that I worked with at Harris Teeter, who are still working there get to keep their jobs. More than anything, I hope my cousin gets to keep his.

  • Guest611 says:

    Well, they have really good birthday cakes. Thats all i got.

  • Guest Local says:

    Kroger sucks. Their prior stores in Wilmington didn’t do well,
    that’s why they left. Also, many union problems.

  • Vog46 says:

    Consolidation in the grocery business?
    I would have rather seen Publix do this…….(or Wegmans) but Kroger seems to be a good fit although I have never shopped there.
    What are they like?

    Vog

  • Guest-o-matic says:

    …albeit many years back. They had clean, well laid out stores that sold a variety of quality items as does HT, along with their home brands. As with HT I shopped there and purchased what was on sale to save expense. Got the remainder elswhere if not an absolute necessity.

  • ChefnSurf says:

    Their selection and quality is better than good and their customer service is excellent.

    “Kroger will finance the deal with debt” and they anticipate a “cost savings of $40 million to $50 million over the next three to four years.” $50 million in savings comes from more than just consolidation and economy of scale. Some of those savings will have to come from cutting back something else from somewhere. That’s might not be a good thing for HT customers.

  • taxpayer says:

    “What are they like?”

    On a scale of 1 – 10….maybe a 7…tops. Highly unionized with a history of strikes. The UFCW union runs the show.

  • Guest2234 says:

    Kroger generally isn’t too good but only time will tell. We think of piggly wiggly not being too good but you go to charleston and its like a Harris teeter. Kroger seems like a lowes food though

  • DollarDivots says:

    They sux…

  • Angewidert says:

    Here we are talking about supermarkets and you couldn’t stay focused long enough to just not post something stupid.

    You’re just the smarted, bestest, coolest ever!

  • taxpayer says:

    when they were here in the late 80’s. Time will tell.

  • Fan says:

    When I heard that HT was investigating this, I was hoping that Publix would be the one to buy.

  • Guest000000 says:

    Rumor was that Dollywood was buying Harris Teeter and merging it with Piggly Wiggly and Big Lots. New Name: Dolly Parton’s Big Wiggly Teeters.

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