Kroger and Harris Teeter have announced the retirement of Thomas W. Dickson as Chairman and Chief Executive Officer of Harris Teeter. The recent news comes as Kroger and Harris Teeter Supermarkets announced the completion of their much anticipated merger. Under the terms of the merger agreement, Harris Teeter shareholders will receive $49.38 per share of Harris Teeter common stock, according to a press release.
"Tad has done an outstanding job as the CEO for the past 16 years," said W. Rodney McMullen, Chief Executive Officer of Kroger. "During his tenure as CEO, the management team of Harris Teeter has more than doubled the sales of the company and increased the operating profit fourfold by building over 100 new stores, expanding into new markets and improving the overall operating performance of the company. We look forward to working closely with the management team to continue to expand the Harris Teeter brand."
Kroger and Harris Teeter also announced the resignation of John Woodlief, Executive Vice President, who has served as Chief Financial Officer since 1999. Woodlief served as managing partner of the PricewaterhouseCoopers Carolinas offices before his time with Harris Teeter. Independence rules concerning Mr. Woodlief's previous position with PricewaterhouseCoopers, who serve as Kroger's independent accountants, prohibit him from serving in a financial role with Kroger. He will pursue other interests and will be available for consultation to the company.
"We are pleased that our merger is complete and look forward to bringing together the best of Kroger and Harris Teeter to benefit our customers, associates and shareholders," McMullen, notes. "This merger brings the exceptional Harris Teeter brand and a complementary base of stores in attractive markets to the Kroger family. We have long respected Harris Teeter's customer orientation, friendly and professional associates, strong management team, and company values – which are consistent with ours. Together, through our Customer 1st Strategy, we are going to be an outstanding combination."
Dickson, the outgoing Chairman and CEO of Harris Teeter Supermarkets, stated, "We are excited that Kroger, one of the best food retailers in the U.S., has recognized the value in Harris Teeter. This successful transaction is, first and foremost, a tribute to our outstanding management teams and associates. Their tireless commitment to delivering great value and excellent customer service has been instrumental in building Harris Teeter into the unique brand that it is today. The merger with Kroger provides the opportunity to continue to expand the Harris Teeter brand as well as to provide future employment and career advancement opportunities for our associates in an increasingly competitive market. The merger also is the culmination of a long track record of delivering substantial value to our shareholders."
The transaction allows Kroger to expand with the Harris Teeter brand and a base of 227 stores in the fast-growing and attractive southeastern and mid-Atlantic markets and in Washington, D.C. with distribution centers for grocery, frozen and perishable foods in Greensboro, NC and Indian Trail, NC.
Through the merger, Kroger will operate 2,641 supermarkets and employ more than 368,000 associates across 34 states and the District of Columbia. Harris Teeter will continue to operate its stores as a subsidiary of TheKroger Co. and will continue to be led by Harris Teeter's current president, Fred Morganthall.
Congratulations Kroger and Harris Teeter on the completed merger!
