Roundy’s announced that it has entered into an agreement and plan of merger with The Kroger Co., based in Cincinnati. Kroger agrees to pay $3.60 a share for Roundy's, a 65 percent premium over the closing price of $2.19 a share on Tuesday.
Roundy's owns and operates 34 upscale Mariano's stores in the Chicago area. Together Kroger and Roundy's will operate 2,774 supermarkets and employ over 422,000 associates across 35 states and the District of Columbia.
Upon completion of the deal, Roundy's will continue to operate its stores as a subsidiary of The Kroger Co. and will continue to be led by key members of Roundy's senior management team. There are no plans to close stores, and associates will have employment opportunities with both companies. Roundy's headquarters will remain in Milwaukee, WI.
Both board of directors have already approved the proposed merger.
In a statement, Bob Mariano, chairman of the board, president and chief executive officer of Roundy's, said, "We are excited about becoming part of The Kroger Co. Kroger's scale, knowledge and experience allows us to accelerate the strategic initiatives we have invested in and makes us a more formidable competitor in the marketplace. This is a great win for our customers, communities, employees and our shareholders, and I personally look forward to continue to exceed customer and employee expectations."