Inside One Roundy's 11.13.15

2015
November 13

Roundy’s and Kroger Announce Merger Agreement

This week the company made a monumental announcement –that Roundy’s would be merging with The Kroger Co.,
one of the world’s largest grocery retailers. The terms of the merger agreement were unanimously approved by both
companies’ Board of Directors, resulting in a transaction valued at approximately $800 million dollars that is expected
to close by the end of 2015.
In his letter written to team members on Wednesday, November 11, Roundy’s
President, Chairman & CEO, Bob Mariano, said of the merger, “This strategic
partnership will give both retailers and associates at each company more opportunities
to grow and serve our customers in key areas. Kroger’s scale and financial strength will
help Roundy’s invest in our Wisconsin stores while allowing us to continue our growth
in Chicago.”

“Kroger’s scale and financial strength will help Roundy’s invest in our
Wisconsin stores while allowing us to continue our growth in Chicago.”

Kroger Chairman & CEO, Rodney McMullen, echoed Bob’s sentiments regarding the partnership stating, “Together,
we are committed to investing in Roundy’s people, communities, stores and merchandising to deliver a fantastic
customer experience that will create opportunities for associates, grow customer loyalty and revenue, and create value
for shareholders.”
The merger, while giving Roundy’s the opportunity to continue to invest in its stores, allows Kroger to further their
geographical reach by entering the Wisconsin market and gives them the ability to learn from the “Mariano’s concept”
which has proven to be successful in Chicagoland since its beginning in 2010.

“We admire what Bob Mariano has done with the Mariano’s banner in Chicago, where he has created an urban format
that is resonating with customers and we expect to apply Roundy’s experience to our stores in urban areas around the
country,” explained Rodney McMullen.
Once the merger is final, Roundy’s and Kroger will have more than 422,000 team members who serve customers in
2,774 stores across 35 states and the District of Columbia. Roundy’s will operate from its current headquarters in

downtown Milwaukee as a subsidiary of Kroger. Throughout the transition Kroger will partner
with the Roundy’s executive leadership team including Bob, who will serve as President of the
Roundy’s division.
“I hope you will join me in sharing my enthusiasm as we look forward to accomplishing great things
together,” concluded Bob in his letter. With this announcement, 2016 will certainly be a new year
for Roundy’s as it joins “the Kroger family of companies.”

“We are excited to welcome Roundy’s to the Kroger family.”

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About Kroger:

Much like Roundy’s, Kroger’s history dates back to the late 1800’s when in 1883 founder, Barney Kroger, invested his
savings to open a grocery store in downtown Cincinnati.

1883 The first store opens at 66 East Pearl Street in 1979 Kroger becomes the nation's second-largest
Cincinnati, Ohio. food retailing company.

1908 On the company's 25th anniversary, 200 horses 1999 Kroger merges with Fred Meyer, Inc. in a
and wagons are making regular store deliveries, $13 billion deal that creates the nation's
and Kroger's growing chain numbers 136 stores in largest retail grocery company.
Cincinnati, Dayton, Columbus and northern Ken-
tucky. 2005 Company sales top $60 billion.

1970’s Kroger, listening to its shoppers through extensive 2008 Kroger celebrates its 125th anniversary.
market research, introduces ultra-modern stores
featuring old-fashioned values and trend-setting 2014 Kroger merges with Harris Teeter, a regional
specialty shops featuring cheese, deli/bakeries, chain of more than 200 stores.
flowers and a host of other items.

Now, the one grocery store that started it all has evolved to be the largest traditional grocery retailer in the United
States with $108.5 billion sales in 2014. Currently Kroger currently operates:

 2,623 grocery retail stores in 34 states and the District of Columbia under nearly two dozen local banners,
including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry’s, Harris Teeter, Jay C, King Soopers, QFC,
Ralphs and Smith’s. Their store formats include supermarkets, price-impact warehouse stores, and
multi-department stores, which are like supercenters.

 781 convenience stores under five banners in 19 states.

 1,350 fuel centers at their supermarkets –“a natural addition
to our one-stop-shopping strategy.”

 37 food procession or manufacturing facilities, including
dairies, bakeries and grocery product plans that make high-
quality private-label products.

 327 fine jewelry stores under names like Fred Meyer
Jewelers, Littman Jewelers, Barclay Jewelers and Fox’s
Jewelers.

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Just as Roundy’s and Kroger both have rich histories, the two companies share many similarities when it comes to
prioritizing customers and contributing to their communities as well. Much like Roundy’s, Kroger shares the “We Put
the Customer First” mentality and strives to provide an exceptional shopping experience that includes great prices,
products and people. In addition, Kroger’s core values include: honesty, integrity, respect, diversity, safety and
inclusion.
Kroger also illustrates a passion for corporate responsibility, donating millions in grants each year to local organizations
through The Kroger Co. Foundation supporting food banks, breast cancer organizations and more. Similar to
Roundy’s and its partnerships with Feeding America and Hunger Task Force, Kroger seeks to support organizations
that fight hunger. In 2014, Kroger and its banners collectively contributed
nearly 78 million pounds of food and other products to local food banks.

The Roundy’s Foundation was charted in 2003 and has donated
more than $10 million since its inception. The company seeks to
make a difference in its communities with similar causes
supporting food pantries, women’s shelters & domestic violence
programs and local organizations in Wisconsin and Illinois.

Kroger is also a supporter of military members and their families partnering with the United Service Organizations
(USO) donating $11.9 million dollars to the USO since 2010.
The company has been recognized for its efforts many times including, receiving the “Corporate IMPACT Award” by

The American Cancer Society, being named the USO’s largest cumulative
donor in its 75-year history, and being named “Grocery Distributor of the
Year” by America’s Second Harvest in 2000 for donating 19 million pounds of
product.

This September, nearly 150 Roundy’s team members
participated in Milwaukee’s Susan G. Komen Race for the Cure.
Kroger also invites its team members to participate in Race for
the Cure each year to support women’s health initiatives.

Have Questions?
As a Roundy’s team member, we expect that you’ll have questions about the merger between our company and
Kroger. Throughout this transition we invite you to visit the following website: http://roundys.learnercommunity.com/
employee-communication.
This page will continue to provide the most recent information about the Roundy’s and Kroger merger. In addition,
you can use the site to submit other questions you may have.