By RTT News,
January 29, 2014, 08:02:00 AM EDT
(RTTNews.com) - Grocery chain operator Kroger Co. ( KR ) and Harris Teeter Supermarkets Inc. ( HTSI ) announced that the merger transaction between the two companies was completed on January 28, 2014.
As per the terms of the merger agreement, Harris Teeter shareholders will receive $49.38 per share of Harris Teeter common stock.
Including the effect of allocating some free cash flow to debt reduction, Kroger continues to expect net accretion to earnings per diluted share in the range of $0.06 - $0.09 in the first full year after the merger, excluding transition and transaction expenses, after taking into account the company's current 8-11% long-term net earnings per diluted share growth rate. Kroger expects to achieve cost savings of approximately $40 to $50 million, largely from the benefits of Kroger's enhanced scale, within the next four years.
As of January 28, 2014, shares of Harris Teeter common stock ceased to trade on the New York Stock Exchange.
Together, the company will operate 2,641 supermarkets and employ more than 368,000 associates across 34 states and the District of Columbia. Harris Teeter will continue to operate its stores as a subsidiary of The Kroger Co. and will continue to be led by Harris Teeter's current president, Fred Morganthall. There are no plans to close stores, and associates will continue to have employment opportunities. Kroger is headquartered in Cincinnati, OH and Harris Teeter's headquarters remains in Matthews, NC, Kroger said. Harris Teeter had revenues of $4.7 billion for fiscal year 2013.
Kroger and Harris Teeter today announced the retirement of Thomas W. Dickson as Chairman and Chief Executive Officer of Harris Teeter Supermarkets Inc.
Kroger and Harris Teeter also announced the resignation of John Woodlief, Executive Vice President, who has served as Chief Financial Officer since 1999. Prior to that time, he served as managing partner of the PricewaterhouseCoopers Carolinas offices. Independence rules concerning Woodlief's previous position with PricewaterhouseCoopers, who serve as Kroger's independent accountants, prohibit him from serving in a financial role with Kroger. He will pursue other interests and will be available for consultation to the company.
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