CHARLOTTE, NC—The Kroger Co. is acquiring Harris Teeter for $2.4 billion, or $49.38 per share. The price marks a 33.7% premium to Harris' closing share price on Jan. 18, the day of the first media report that the grocery store brand was evaluating strategic alternatives. The boards of both companies have approved the deal.

David B. Dillon, Kroger's chairman and CEO, called Harris an exceptional company with a great brand, friendly and talented associates, and attractive store formats in vibrant markets run by a first-class management team. As Dillon sees it, Harris shares Kroger's customer-centric approach, from store format and merchandising to loyalty programs. Post-merger, Kroger will operate 2,631 supermarkets and employ more than 368,300 associates across 34 states and the District of Columbia.

“This is a financially and strategically compelling transaction and a unique opportunity for our shareholders and associates,” Dillon says. “We look forward to bringing together the best of Kroger and Harris Teeter while continuing to operate and grow the Harris Teeter brands. Together, we can continue to deepen our connections with customers across all of our markets."