Kroger to purchase Harris Teeter supermarkets

Cincinnati-based Kroger has agreed to purchase North Carolina-based Harris Teeter for $2.5 billion, or $49.38 per share plus the assumption of $100 million in debt. Kroger is the largest traditional grocery chain in the U.S. with approximately 2,500 supermarkets in 31 states.

According to reports, Kroger likes Harris Teeter's strong position in growing markets, like the Mid-Atlantic and Southeast. Acquiring the company allows Kroger to enter certain markets - like Washington D.C. and Charlotte, NC - less expensively than through new store development.

Kroger is expected to retain the Harris Teeter name, and although Kroger mostly operates unionized stores and Harris Teeter does not, analysts don't believe the Harris Teeter stores would become unionized.

Harris Teeter currently operates over 200 stores in eight states and the District of Columbia.

Update: Judge approves sale of most Maryland Super Fresh stores

I've blogged a couple times about the sale of 12 Super Fresh stores in Maryland and the issues some landlords have with the sale (June 10 - More hurdles in the sale of Mid-Atlantic Super Fresh stores; May 31 - Landlord objects to Super Fresh sale to Green's Natural Market).

On Tuesday, the judge in A&P's bankruptcy case approved the sale of eight of the 12 stores, but delayed approval on four stores, three of which were bid on by Mrs. Green's Management Corp. and one by Village Super Markets. The judge said the delay was to give Regency Centers time to resolve its objection to the assignment of its lease in Parkville to Mrs. Green's.

All other objections were overruled.