Kroger, Albertsons Selling More Than 400 Stores

Kroger and Albertsons have announced the sale of over 400 stores and various assets to C&S Wholesale Grocers in a deal valued at approximately $1.9 billion. This move is a crucial step in their merger plan.

The agreement encompasses the sale of 413 stores, including those under the QFC, Mariano's, and Carrs brand names. Kroger will also divest its private label brands, including Debi Lilly Design, Primo Taglio, Open Nature, ReadyMeals, and Waterfront Bistro. Furthermore, C&S will acquire eight distribution centers and two offices.

Notably, all fuel centers and pharmacies associated with the divested stores will remain operational under their respective store locations.

Kroger and Albertsons initially announced their merger plans in October, with Kroger, headquartered in Cincinnati, Ohio, offering $20 billion for Albertsons and agreeing to assume $4.7 billion of Albertsons' debt. The anticipated closing date for this merger is early next year.

Before finalizing the deal with C&S, Kroger may, as part of obtaining regulatory clearance from the Federal Trade Commission and other government bodies, require C&S to purchase an additional 237 stores in specific regions. If these additional stores are included in the agreement, C&S will compensate Kroger with an amount yet to be determined.

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