On a combined basis, the two companies delivered ~$210B in revenue, $3.3B in net earnings and $11.6B of adjusted EBITDA in FY 20211
The combined capabilities will accelerate growth of Alternative Profit Businesses
Expect to deliver ~$1B of annual run-rate synergies net of divestitures within the first four years following close, with 50% achieved within the first two years post-close, largely through improved sourcing, optimization of manufacturing and distribution networks, and technology investment amplification opportunities
More resilient business model expected to deliver TSR well above Kroger's standalone model of 8 – 11% during the first four years post close
Transaction expected to be accretive to earnings in the first year following close and double digit accretive to earnings by year four, excluding one-time costs
Kroger is strongly committed to an investment grade credit rating and has already paused its share repurchase program to prioritize de-leveraging to achieve 2.5x EBITDA net leverage target in first 18 – 24 months post-merger