Kroger buys Roundy's grocery retailer

Kroger announced the successful completion of Kroger's tender offer to purchase all outstanding shares of Roundy's common stock for $3.60 per share in cash.

"This merger blends Roundy's complementary markets with Kroger's strengths in scale and merchandising. Our future together is bright, and we look forward to learning from each other as partners," said Rodney McMullen, Kroger's chairman and CEO. "Most of all, we want to welcome each of Roundy's more than 22,000 associates to the Kroger family of stores."

"We look forward to bringing together the best of Roundy's and Kroger for our customers and associates," said Bob Mariano, who will continue to lead Roundy's as president and CEO. He has served as chairman, president and chief executive officer of Roundy's since 2002. "Our merger with Kroger will help us continue to exceed our customers' expectations."

Kroger says that while it expects to have a cost savings of $40 million over time, it doesn’t plan to close any stores.

Roundy’s exited the Minneapolis-St. Paul market last year, selling 18 Rainbow stores to a group of local grocery retailers for $65 million.

Kroger, is one of the world's largest retailers, employs more than 422,000 associates who serve customers in 2,774 supermarkets and multi-department stores in 35 states and the District of Columbia under two dozen local banner names including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry's, Harris Teeter, Jay C, King Soopers, Mariano's, Pick 'n Save, QFC, Ralphs and Smith's.