(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 billionpart 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 inwill continue to operate as usual.
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 assumeyear, 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 beif more stores are added to the agreement.
The company was founded in 1918 andindependent supermarkets, retail chain stores and military more than 7,500 independent supermarkets, retail chain stores and military bases.
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 tohas successfully transitioned union employees and their associated collective bargaining agreements in the past
of our agreement, C&S has committed to honoring all collective bargaining 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.
in morning trading, while Albertsons stock rose more than 2% in the morning trading session.