Kroger finalizes $2.5 billion acquisition of Harris Teeter
Kroger Co. recently announced that it had successfully acquired Harris Teeter Supermarkets Inc. for $2.5 billion.
Founded in 1883, Kroger is the largest supermarket chain in the United States, with more than 2,400 stores in 31 states across America. Harris Teeter, on the other hand, is a North Carolina-based chain of supermarkets that has 225 stores in eight states along the East Coast.
According to a press release published on Wednesday, January 29, this acquisition will enable Kroger to expand its operations to this East Coast market, where it can access customers in Washington, D.C., Georgia, Florida, the Carolinas and more. As part of the agreement, Harris Teeter will continue to operate under its current brand name.
"We are pleased that our merger is complete and look forward to bringing together the best of Kroger and Harris Teeter to benefit our customers, associates and shareholders," said Kroger CEO W. Rodney McMullen in a press statement. "This merger brings the exceptional Harris Teeter brand and a complementary base of stores in attractive markets to the Kroger family. We have long respected Harris Teeter's customer orientation, friendly and professional associates, strong management team and company values."
Business acquisitions can be advantageous in a variety of different industries, as we've written about extensively on this blog. By combining resources, companies have the ability to expand their offerings, reach new markets and grow their revenue at a much faster rate. Understandably, these transition processes can be quite complex, but the good news is that there are merger and acquisition firms that can make them a whole lot easier.