CINCINNATI and AUSTIN, Texas, April 29, 2019 /PRNewswire/ -- The Kroger Co. (KR) today announced it has completed the sale of its Turkey Hill business to an affiliate of Peak Rock Capital.
Kroger's sale of the Turkey Hill business was for total consideration of $215 million. Kroger intends to use the after-tax cash proceeds from the sale to reduce debt.
"We want to thank Turkey Hill's associates for their dedication and their many contributions to the company," said Erin Sharp, group vice president of Kroger Manufacturing. "We look forward to the continued success of the Turkey Hill brand."
Kroger announced in August 2018 its intention to explore strategic options for its Turkey Hill business, including a potential sale. In March, Kroger and Peak Rock Capital announced a definitive agreement for the sale of Kroger's Turkey Hill business to an affiliate of Peak Rock Capital.
As part of the agreement, the Peak Rock Capital affiliate will continue to operate the Turkey Hill business out of its Conestoga, PA, location with the nearly 800 full-time, part-time and seasonal associates and under the same recognizable brand. Turkey Hill produces a full line of popular ice cream products, iced teas, lemonades, fruit drinks and dairy products.
Goldman Sachs & Co. LLC acted as exclusive financial advisor to Kroger.
At The Kroger Co. (KR), we are dedicated to our Purpose: to Feed the Human Spirit™. We are nearly half a million associates who serve nine million customers daily through a seamless digital shopping experience and 2,800 retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.
About Peak Rock Capital
Peak Rock Capital is a leading middle-market private investment firm that makes equity and debt investments in companies in North America and Europe. Peak Rock focuses on investing in opportunities where it can support senior management in driving rapid growth and profit improvement through operational and strategic change. Peak Rock's principals have deep expertise in complex situations, carve-outs, and cross border transactions, with the ability to provide tailored capital solutions and close transactions quickly where speed and certainty are priorities. For further information about Peak Rock Capital, please visit www.peakrockcapital.com.
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