Dec. 19--Your neighborhood Mariano's store is now officially owned by Kroger, the nation's largest grocery store chain.
Kroger confirmed late Friday that its acquisition of Roundy's, parent company of Mariano's, had closed as expected. The deal was for $800 million, including debt.
At about midnight Thursday, Kroger completed its tender offer of outstanding shares of Roundy's stock. Federal regulators signed off on the deal earlier this week, said Kroger spokesman Keith Daley.
"We look forward to bringing together the best of Roundy's and Kroger for our customers and associates," said Bob Mariano, Roundy's president and CEO, in a statement. "Our merger with Kroger will help us continue to exceed our customers' expectations."
Mariano, who will stay in his post as Roundy's CEO, has maintained that the merger will only improve the quality at Mariano's stores. The first Mariano's opened in 2010 in Arlington Heights; there are now 34 stores.
The Roundy's takeover is emblematic of the grocery industry's trend toward consolidation in recent years. For Mariano's, the deal could help improve service, given Kroger's expansive financial resources, executives have said. And for Kroger, the merger represents a meaningful stake in the Chicago market.
Kroger's tender offer $3.60 per share of Roundy's common stock prompted some lawsuits from shareholders who alleged Roundy's board of directors "breached its fiduciary duties," according to recent securities exchange filings. Such lawsuits are common in large mergers.
Roundy's shares will no longer be traded on the New York Stock Exchange.
"This merger blends Roundy's complementary markets with Kroger's strengths in scale and merchandising. Our future together is bright, and we look forward to learning from each other as partners," said Rodney McMullen, Kroger's chairman and CEO, in a statement. "Most of all, we want to welcome each of Roundy's more than 22,000 associates to the Kroger family of stores."
gtrotter@tribpub.com
