Kroger Completes Harris Teeter Merger
The Kroger Co., Cincinnati, and Harris Teeter Supermarkets, Inc., Matthews, N.C., announced that the merger transaction between the two companies was completed on Jan. 28. Under the terms of the merger agreement, Harris Teeter shareholders will receive $49.38 per share of Harris Teeter common stock.
"We are pleased that our merger is complete and look forward to bringing together the best of Kroger and Harris Teeter to benefit our customers, associates and shareholders," says W. Rodney McMullen, chief executive officer of Kroger. "This merger brings the exceptional Harris Teeter brand and a complementary base of stores in attractive markets to the Kroger family. We have long respected Harris Teeter's customer orientation, friendly and professional associates, strong management team and company values, which are consistent with ours. Together, through our Customer 1(st) Strategy, we are going to be an outstanding combination."
"We are excited that Kroger, one of the best food retailers in the U.S., has recognized the value in Harris Teeter,” says Thomas W. Dickson, the outgoing chairman and CEO of Harris Teeter Supermarkets. “This successful transaction is first and foremost a tribute to our outstanding management teams and associates. Their tireless commitment to delivering great value and excellent customer service has been instrumental in building Harris Teeter into the unique brand that it is today. The merger with Kroger provides the opportunity to continue to expand the Harris Teeter brand as well as to provide future employment and career advancement opportunities for our associates in an increasingly competitive market. The merger also is the culmination of a long track record of delivering substantial value to our shareholders."
The transaction allows Kroger to expand with the Harris Teeter brand and a base of 227 stores in the southeastern and mid-Atlantic markets and in Washington, D.C. Harris Teeter also operates distribution centers for grocery, frozen and perishable foods in Greensboro, N.C., and Indian Trail, N.C., and a dairy facility in High Point, N.C. Harris Teeter will continue to operate its stores under the Harris Teeter brand name as a subsidiary of The Kroger Co. Harris Teeter had revenues of $4.7 billion for fiscal year 2013.