Kroger Co. (KR) has taken midwestern grocery chain Roundy’s Inc. (RNDY) to the checkout aisle with an $800 million deal. The acquirer is offering $3.60 per share in cash, a 65% premium over Roundy’s closing price on Tuesday. Kroger plans to fund the deal with debt and refinance the target’s $646 million debt load. The combined company will run 2,774 stores with more than 422,000 employees in 35 states and the District of Columbia. The Midwest supermarket chain was noted on The Deal’s Watch List as early as December 2014 after sources speculated around the time that Roundy’s was likely preparing to exit its more than 100 stores in Wisconsin, which unlike the Mariano’s concept, are more conventional supermarkets and have been struggling to compete against competitors, according to The Deal’s Sarah Pringle. Kroger expanded its presence in the southeast in January 2014 with a $2.54 billion acquisition of Harris Teeter Supermarkets Inc. The Deal’s Senior Reporter Lisa Allen has the details from New York.
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