An Ohio-based grocery chain with a major Indiana presence is making an $800 million acquisition. The Kroger Co.’s (NYSE: KR) deal for Wisconsin-based Roundy’s Inc. (NYSE: RNDY) includes 151 stores and 101 pharmacies in Wisconsin and Illinois.
The boards of directors of both companies have unanimously approved the deal, under which Kroger will purchase the outstanding shares of Roundy’s for $3.60 per share. Roundy’s has 22,000 associates and reported revenues of nearly $4 billion in fiscal year 2014.
Kroger Chief Executive Officer Rodney McMullen says the store’s "scale and strong financial position" will allow Roundy’s to reinvest in its home state of Wisconsin and continue to grow in Chicago.
Kroger has detailed plans to invest $465 million in the Indianapolis area through 2017 and add at least 3,500 employees. In September, the company opened a new, $21 million Marketplace store in Indianapolis. The chain says there are plans in the works for six additional locations.