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VOL. 128 | NO. 133 | Wednesday, July 10, 2013

Kroger to Buy Harris Teeter for About $2.44 Billion

BREE FOWLER | The Associated Press

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NEW YORK (AP) – Kroger, the country’s largest traditional supermarket operator, said Tuesday that it has agreed to buy Harris Teeter Supermarkets Inc. for about $2.44 billion in cash, boosting its presence in key Southeastern and mid-Atlantic markets.

Under the terms of the agreement, Cincinnati-based Kroger will pay $49.38 for each of the supermarket chain’s shares. The price represents a 2 percent increase over the company’s Monday closing stock price.

“This is a financially and strategically compelling transaction and a unique opportunity for our shareholders and associates,” Kroger Chairman and CEO David Dillon said in a statement.

The deal has been approved by both companies’ boards, but remains subject to Harris Teeter shareholder approval. Harris Teeter announced in February that it was exploring strategic alternatives, including a possible sale.

Harris Teeter operates 212 stores in eight Southeastern and mid-Atlantic states and Washington, along with a pair of distribution centers and a dairy facility in North Carolina. Its fiscal 2012 revenue totaled about $4.5 billion.

In comparison, Kroger operates 2,419 stores in 31 states. In addition to its flagship brand of supermarkets, it also owns Ralphs, Fry’s, Food 4 Less and other brands. The acquisition adds another three states to its store footprint.

Kroger’s Memphis-based Delta Division operates 115 Kroger grocery stores and 70 fuel centers in five states.

After the deal closes, Harris Teeter will become a Kroger subsidiary.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 119 482 10,051
MORTGAGES 119 497 11,811
FORECLOSURE NOTICES 29 82 1,716
BUILDING PERMITS 268 1,056 21,366
BANKRUPTCIES 50 263 6,700
BUSINESS LICENSES 28 151 3,584
UTILITY CONNECTIONS 33 172 4,155
MARRIAGE LICENSES 20 111 2,290

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