CINCINNATI, Ohio, Dec. 19,
2024 /PRNewswire/ -- The Kroger Co. (NYSE: KR)
today announced that it entered into Accelerated Share Repurchase
("ASR") agreements with each of Wells Fargo Bank, National
Association and Citibank, N.A. (the "Dealers") to repurchase, in
aggregate, $5.0 billion in shares of
Kroger common stock. The ASR agreements will be completed under
Kroger's recently announced $7.5
billion share repurchase authorization. Kroger is funding
the share repurchases under the ASR agreements with existing cash
on hand.
Under the ASR agreements, Kroger will pay $5.0 billion to the Dealers and expects to
receive an initial delivery of approximately 65.6 million shares of
Kroger common stock on December 20,
2024, representing approximately 80% of the total number of
shares of Kroger common stock that could be purchased with
$5.0 billion at a price per share
equal to the closing price of Kroger common shares on December 19, 2024. The total numbers of shares
purchased by Kroger pursuant to the ASR agreements will be based on
the average of the volume-weighted average prices of Kroger common
shares on specified dates during the term of each ASR agreement,
less a discount, and subject to adjustments pursuant to the terms
and conditions of the ASR agreements. Final settlement under the
ASR agreements is expected to occur no later than the third fiscal
quarter of Kroger's Fiscal 2025.
In addition to the ASR program, Kroger has $2.5 billion of capacity remaining under its
share repurchase authorization for incremental share repurchases
over time.
About Kroger
At The Kroger Co. (NYSE: KR),
we are dedicated to our Purpose: To Feed the Human Spirit™. We are,
across our family of companies nearly 420,000 associates who serve
over 11 million customers daily through a seamless digital shopping
experience and retail food stores under a variety of banner
names, serving America through food inspiration and uplift, and
creating #ZeroHungerZeroWaste communities. To learn more about us,
visit our newsroom and investor
relations site.
This press release contains certain statements that constitute
"forward-looking statements" about management's plans, goals and
expectations with respect to the accelerated share repurchase
program, Kroger's financial position and the future performance of
the company. These statements are based on management's assumptions
and beliefs in light of the information currently available to it.
Such statements are indicated by words or phrases such as "expect,"
"may," "will," and variations of such words and similar phrases.
Various uncertainties and other factors could cause actual results
to differ materially from those contained in the forward-looking
statements, including statements regarding the amount, timing and
delivery of shares of Kroger common stock as currently planned, and
other risks and uncertainties identified in "Risk Factors" in our
annual report on Form 10-K for our last fiscal year and any
subsequent filings.
Kroger assumes no obligation to update the information contained
herein unless required by applicable law. Please refer to Kroger's
reports and filings with the Securities and Exchange Commission for
a further discussion of these risks and uncertainties.
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SOURCE The Kroger Co.
