Supermarket operator Kroger Co said it would purchase smaller chain Roundy's Inc for $800 million including debt to expand in Wisconsin and the Chicago area.The $3.60 per share cash offer represents a 65 percent premium to Roundy's Tuesday close of $2.18.The deal has an equity value of $177.8 million, based on Roundy's outstanding shares as of Aug. 3. Milwaukee-based Roundy's operates supermarkets under the Pick 'n Save, Copps and Metro Market and Mariano's banners, primarily in the upper Midwest.
The Kroger Co. (Kroger) operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores throughout the United States. Shares of KR fell by 0.64% or $-0.24/share to $37.03. In the past year, the shares have traded as low as $27.32 and as high as $39.43. On average, 7697290 shares of KR exchange hands on a given day and today's volume is recorded at 7538514.
Roundy's, Inc. is a Midwest supermarket chain. The Company offers a range of products, stocking around 45,000 different items. Shares of RNDY traded higher by 63.76% or $1.39/share to $3.57. In the past year, the shares have traded as low as $2.03 and as high as $6.12. On average, 489408 shares of RNDY exchange hands on a given day and today's volume is recorded at 14836210.