Kroger and C&S Wholesale Grocers have settled a lawsuit C&S filed earlier this year that claimed the supermarket chain owed it a $125 million termination fee stemming from Kroger’s failed effort to merge with Albertsons, the companies disclosed in a joint court filing on Friday.
The companies said in the Delaware Superior Court filing that they have resolved all claims contained in the litigation. They did not say whether Kroger agreed to make a payment to C&S or provide other details about their agreement, noting that all terms of the settlement are confidential.
Kroger and C&S said the case was dismissed “with prejudice,” meaning C&S cannot file suit against Kroger over the same claims again in the same court.
“We are pleased to resolve the claims from C&S, and we look forward to a friendly relationship with them going forward. Kroger remains focused on serving our customers and running great stores across the U.S.,” Kroger Chairman and interim CEO Ron Sargent said in a statement Kroger released Monday morning.
C&S said in an emailed statement that it is “pleased to have reached this resolution with Kroger,” without providing further details.
“We are looking forward to our continued transformation journey,” the grocery distributor and retailer said. “C&S is well positioned for the future and committed to our continued growth across the U.S.”
C&S sued Kroger in March, alleging that Kroger owed it a termination fee because the grocery chain’s inability to complete its deal with Albertsons prevented C&S from acquiring stores and other assets the merger partners agreed to sell to win regulatory approval for the merger. Under the divestiture plan, C&S was in line to acquire nearly 600 supermarkets, access to private brands and other assets from Kroger and Albertsons.
Kroger responded to the suit by claiming that C&S was not entitled to a termination fee because it allegedly violated its contract with Kroger by having secret discussions with Albertsons employees about the merger arrangement.
C&S has taken steps to bolster its retail presence following the dissolution of Kroger and Albertsons’ merger deal at the end of last year. The company was part of an investor group that agreed in February to buy Southeastern Grocers from Aldi. In June, C&S said it would acquire grocery retailer and wholesaler SpartanNash.
