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With a $1.9 Billion Deal, Kroger And Albertsons Are Selling 400 Stores

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With a $1.9 Billion Deal, Kroger And Albertsons Are Selling 400 Stores

(CTN News) – As part of their efforts to complete their merger, Kroger and Albertsons are selling more than 400 stores along with other assets to C&S Wholesale Grocers in an approximately $1.9 billion deal as part of their efforts to complete the merger.

As part of the agreement, QFC, Mariano’s, and Carr’s brand names will be sold in addition to 413 stores. The company will also divest the Debi Lilly Design, Primo Taglio, Open Nature, ReadyMeals and Waterfront Bistro private label brands from its portfolio.

Additionally, C&S will receive eight distribution centers and two offices in the next few years.

The fuel centers and pharmacies associated with the divested stores will remain in place with the stores and will continue to operate as usual.

The merger between Kroger and Albertsons was announced in October of last year. As part of its bid for Albertsons, Kroger, headquartered in Cincinnati, Ohio, offered $20 billion.

As part of this transaction, Kroger would also assume Albertsons’ debt of $4.7 billion. During the first quarter of next year, the deal is expected to close.

It is possible that Kroger, in order to secure Federal Trade Commission and other governmental clearances before the deal with C&S closes, may require C&S to purchase as many as 237 additional stores in certain regions before the sale closes.

In the event that more stores are added to the agreement, C&S will pay Kroger a sum of money that has yet to be determined, if more stores are added to the agreement.

The company was founded in 1918 and is a supplier to independent supermarkets, retail chain stores and military bases, supplying more than 7,500 independent supermarkets, retail chain stores and military bases.

There are currently Grand Union grocery stores in the Midwest and Carolinas, as well as Piggly Wiggly franchises and the company’s own stores.

The C&S Group has prior experience with divestitures related to mergers, and has successfully transitioned union employees and their associated collective bargaining agreements in the past through the process of divestitures.

As a part of our agreement, C&S has committed to honoring all collective bargaining agreements, which include industry-leading benefits, retaining frontline associates, and investing further in their growth, said Rodney McMullen, Kroger’s Chairman and CEO in a statement on Friday.

A small decline in Kroger Co.’s stock was reported in morning trading, while Albertsons Cos.’s stock rose more than 2% in the morning trading session.

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