Private equity firms have been sizing up Kroger Co., the nation’s largest traditional grocery store chain, The Wall Street Journal reported today.
The newspaper, citing unnamed people familiar with the matter, said Kroger is drawing interest on the expectation that the company will soon explore a leveraged buyout that would take the company private.
The Journal said it was unclear whether such expectations would play out.
Kroger declined to comment on the report. “Kroger has a policy of not commenting on rumors and speculation,” said spokeswoman Meghan Glynn.
At Thursday’s closing price, Kroger had a market capitalization of $20.7 billion on the New York Stock Exchange. The stock market is closed today for Good Friday.
Kroger’s profit rose 16 percent to $1.11 billion, or $1.54 per share, on $66.1 billion in revenue in fiscal 2006.
Kroger operates 2,468 supermarkets and multi-department stores in 31 states, under two dozen local banners that include King Soopers and City Market in Colorado, and Ralphs, Fred Meyer, Food 4 Less, Smith’s, Fry’s, Dillons and QFC.
———
On the Net:
