Kroger to Buy Roundy's to Expand in Midwest
Supermarket operator Kroger Co said it would buy smaller chain Roundy's Inc for $800 million including debt to expand in Wisconsin and the Chicago area. The $3.60 per share cash offer represents a 65 percent premium to Roundy's Tuesday close of $2.18. Roundy's shares rose to $3.58 in premarket trading on Wednesday. Kroger's shares were up 2 percent at $38.08. The deal has an equity value of $177.8 million, based on Roundy's outstanding shares as of Aug. 3. Milwaukee-based Roundy's operates supermarkets under the Pick 'n Save, Copps and Metro Market and Mariano's banners, primarily in the upper Midwest. The deal will give Kroger 151 retail grocery stores and 101 pharmacies, giving it a total of 2,774 stores in 35 states.