In a move to help Kroger and Albertsons win anti-trust approval, the retailers are selling over 400 stores to Piggly Wiggly’s parent company C&S Wholesale Grocers.
C&S Wholesale Grocers will pay $1.9 billion, with the deal expected to close in early 2024 subject to regulatory approval, the company said in a statement. C&S, a privately held company, operates five hundred grocery stores under the Piggly Wiggly and Grand Union banners and is also a major grocery wholesaler.
"C&S is led by an experienced management team with an extensive background in food retail and distribution and has the financial strength to continue investing in associates and the business for the long run,” Rodney McMullen, chairman and CEO of The Kroger Co., said. “Importantly in our agreement, C&S commits to honoring all collective bargaining agreements which include industry-leading benefits, retaining frontline associates and further investing for growth."
“This comprehensive divestiture plan marks a key next step toward the completion of the merger by extending a well-capitalized competitor into new geographies,” Kroger and Albertsons said in the statement, adding that no stores are closing and “all existing collective bargaining agreements will continue.”
Under terms of the deal, C&S will also get three smaller grocery store brands including QFC, Mariano’s and Carrs as well as the “exclusive licensing rights” to the Albertsons name in Arizona, California, Colorado, and Wyoming.
In addition, longtime private label seafood brand Waterfront Bistro is being sold off as part of the plan by Kroger to merge with Albertsons. Safeway introduced the Waterfront Bistro line in 2009.
Kroger is also divesting the Debi Lilly Design, Primo Taglio, Open Nature, ReadyMeals private label brands as well. This follows the announcement that Kroger is selling 413 stores, along with the QFC, Mariano’s and Carrs supermarket brand names, to C&S Wholesale Grocers.