Roundy’s Supermarkets Inc. (Milwaukee) has entered into an $800 million deal with The Kroger Co. (Cincinnati) to purchase the Mariano’s chain of grocery stores. The deal is expected to close by the end of the year. Mariano’s operates 34 stores throughout the Chicago region.
As a result of the deal, Mariano’s is expected to benefit from the financial buying power Kroger will allow it, and Kroger will be able to learn from Mariano’s experience in the urban market. Kroger also expects to save $40 million once the deal closes. Roundy’s shares jumped 64 percent in trading after the agreement was made public.
According to Chicago Tribune, Roundy’s CEO Bob Mariano, and the rest of the Roundy’s management team, will remain in charge of the chain even after the deal is complete.