Kroger to buy Harris Teeter in $2.4 billion deal

[thelakelander]

Kroger creeps into NE Florida. I'm now kicking myself for deciding to not buy stock in Harris Teeter late last year.

Kroger Co. will acquire Harris Teeter Supermarkets Inc. in a $2.4 billion deal, Kroger announced this morning.

Cincinnati-based Kroger offered $49.38 per share in cash, representing a premium of 1.8 percent to Harris Teeter’s Monday close. Kroger said it expects the deal to add 6 cents to 9 cents to its earnings per share in the first full year after close, excluding transition and transaction expenses.

Harris Teeter operates a chain of 212 supermarkets in North Carolina, Virginia, South Carolina, Maryland, Tennessee, Delaware, Florida, Georgia and the District of Columbia. It reported revenue of about $4.5 billion for 2012. Total employment is about 25,300, and the company is not unionized.

There is one Harris teeter store in Northeast Florida, located at 4800 First Coast Highway in Fernandina Beach.
No store closures are planned.

http://www.bizjournals.com/jacksonville/news/2013/07/09/kroger-to-buy-harris-teeter-in-24.html

[Charles Hunter]

Wonder if they will expand here?

[thelakelander]

^Possibly...

Kroger deal could make it a major player in Florida

Here's an overlooked benefit for Kroger Co. in its planned acquisition of Harris Teeter Supermarkets Inc. The deal could provide a gateway for Kroger to get into the lucrative Florida market in a big way.

Kroger will pick up 212 Harris Teeter stores once the deal announced Tuesday goes through. Just one of those is in Florida, and it's just across the border from Georgia.

That's not much of a foothold, but it could be enough to send Kroger off to the races in the fourth-most populous state in the country.

full article: http://www.bizjournals.com/cincinnati/blog/2013/07/kroger-deal-could-make-it-a-major.html

[jaxjags]

During the 80's Kroger made an attempt to enter the South Florida market. They had a store in Vero Beach.  From what I can remember they only lasted a couple years. They could not penetrate the Publix/Winn Dixie market share which was very high in those days. More competition with Wal Mart these days and a few others. My guess is the purchase is for the Carolina's market.

[fsquid]

once publix announced they were going for the Charlotte market, HT waves the white flag and puts themselves for sale.  weird

[FSBA]

If Kroger expanded to Florida it might be the final nail in Winn-Dixie's coffin. But Kroger would just replace WD's market share. I don't think they could successfully take on twin headed beast of Publix and Wal-Mart.