Malvern-Based Acme Markets Set To Sell To Kroger

MALVERN, PA —Acme Markets, the Malvern-based supermarket chain, owned by Idaho-based Albertsons Cos, is in the process of being purchased by Kroger, based in Cincinnati, for $2o billion in stock, according to the Philadelphia Inquirer

The deal combines the second- and third-largest U.S. grocers — behind Walmart — who together employ over 700,000 workers at 5,000 food markets, nearly 4,000 drugstores, and 2,000 gas stations.

Kroger, the buyer, said the company hopes to save an eventual $1 billion by combining food processing, operations and sourcing operations, and adding labor saving technology. Kroger will also take over $5 billion in Albersons' debt.

"We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders," said Rodney McMullen, Kroger chairman and CEO, who will continue serving as chairman and CEO of the combined company, said in a press release.

“As a combined company, we will build on our similar values to create a culture that embraces diversity, equity and inclusion and fosters a best-in-class associate experience by enabling, supporting and empowering our associates to unlock their full potential.”

Wendell Young IV, president of UFCW Local 1776, which represents 35,000 workers 100 employers for both companies, assured employees that the union contract will remain in place throughout this process.”

Young said it appears that the merger will take 18 to 24 months.

Acme’s history in Pennsylvania

Acme has been a high-profile supermarket chain in the Philadelphia region for decades.

There are 164 Acme Markets in Pennsylvania, and nearby New Jersey, Delaware, New York and Connecticut.

Acme originated in 1891 when friends Samuel Robinson and Robert Crawford decided to open a neighborhood store in South Philadelphia at Second and Fernon streets.

In 1937, it expanded to a full service market called Acme.

In 1999, Albertsons Cos., acquired Acme.