Kroger, C&S settle $125M lawsuit
By
Ryan G. Beckman
Kroger, C&S settle $125M lawsuit
Another chapter has closed in the lengthy — and ultimately doomed — $24.6 billion merger between Kroger and Albertsons. As part of the merger the companies were to divest 579 stores to C&S Wholesale Grocers. When the deal fell apart C&S filed a $125 million lawsuit against Kroger. The two companies have now reached a settlement.
While C&S said it was entitled to $125 million as a termination fee, Kroger filed counterclaims stating Albertsons and C&S undermined the deal by engaging in a secret and misguided campaign.
The terms of the settlement are confidential, but Kroger said all claims have been resolved.
"We are pleased to resolve the claims from C&S, and we look forward to a friendly relationship with them going forward," said Ron Sargent, chairman and CEO of Kroger. "Kroger remains focused on serving our customers and running great stores across the U.S."
Following the failed Kroger-Albertsons merger, C&S entered into a definitive merger agreement with SpartanNash and is expected to acquire that retailer for $1.77 billion.