Kroger plans debt to buy Roundy’s, take on $646 million existing debt

By Marisa Wong

Morgantown, W.Va., Nov. 11 – Kroger Co. announced it plans to use debt to finance its merger with Roundy’s, Inc., valued at $800 million.

Kroger will purchase all outstanding shares of Roundy’s for $3.60 per share in cash. Kroger also plans to refinance Roundy’s existing debt of $646 million based on market conditions, according to a press release.

The merger between the grocers is expected to close by year-end.

Kroger is based in Cincinnati, and Roundy’s is based in Milwaukee.

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