CINCINNATI (AP) - Kroger says it has agreed to buy Harris Teeter Supermarkets Inc. for about $2.44 billion in cash.
Kroger will pay $49.38 for each of its rival supermarket chain's shares. The price represents a 2 percent increase over the company's Monday closing stock price. The deal has been approved by both companies' boards.
Matthews, N.C.-based Harris Teeter operates 212 stores in southeastern and mid-Atlantic markets, along with a pair of distribution centers and a dairy facility. Its fiscal 2012 revenue totaled about $4.5 billion.
While it has no stores in the Fredericksburg area, Harris Teeter operates a transfer station in Spotsylvania County that services stores in Northern Virginia, Charlottesville and Maryland.
At one time it had plans to build a 500,000 square foot distrbution center in King George County, but scrapped those plans in 2010. It operates centers in Charlotte and Greensboro, NC.
Cincinnati-based Kroger Co. says it expects the deal to result in cost savings of $40 million to $50 million over the next three to four years.
Kroger will finance the deal with debt and plans to assume Harris Teeter's outstanding debt of about $100 million.