NEW YORK (AP) – Kroger plans to buy fellow grocer Roundy’s for about $178 million to expand in the Midwest.
Roundy’s Inc., based in Milwaukee, owns about 151 stores in Wisconsin and Illinois. Its stores include Copps, Mariano’s, Metro Market and Pick ‘n Save. Kroger said the deal will give it a presence in new areas.
Cincinnati-based Kroger Co. operates more than 2,600 stores in 34 states. It owns several supermarket chains, including City Market, Ralphs and Harris Teeter.
Kroger said it will pay $3.60 for each share of Roundy, a 61 percent premium from Roundy’s closing price of $2.18 on Tuesday. Including debt, Kroger valued the deal at $800 million. The deal is expected to close before the end of the year.
Shares of Roundy’s jumped 64 percent in morning trading Wednesday.
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