Kroger completes blockbuster sale
The Kroger Co. has completed the sale of its convenience store business division to EG Group for $2.15 billion.
The deal, announced in February, is worth $2.15 billion, with after-tax proceeds of $1.7 billion. The sale includes 762 convenience stores operating across 18 states under a variety of banners, including Turkey Hill, Loaf 'N Jug, Kwik Shop, Tom Thumb and Quik Stop. Kroger's supermarket fuel centers and its Turkey Hill Dairy were not included in the sale.
EG Group will establish its North American headquarters in Cincinnati. It continue to operate the acquired stores under their existing banners.
Kroger will use proceeds from the sale for new $1.2 billion share buyback program (in addition to the $1 billion program announced in March). The remaining proceeds will be used to lower debt.
"Throughout the sales process, we have been impressed with EG Group's professionalism, commitment to people, and understanding of the U.S. convenience retail market," said Mike Schlotman, Kroger's executive VP and CFO. "I can't stress enough how important to our success Kroger's convenience store management and associates have been, and we want to thank them for all of their contributions to our customers and our company."
The deal, announced in February, is worth $2.15 billion, with after-tax proceeds of $1.7 billion. The sale includes 762 convenience stores operating across 18 states under a variety of banners, including Turkey Hill, Loaf 'N Jug, Kwik Shop, Tom Thumb and Quik Stop. Kroger's supermarket fuel centers and its Turkey Hill Dairy were not included in the sale.
EG Group will establish its North American headquarters in Cincinnati. It continue to operate the acquired stores under their existing banners.
Kroger will use proceeds from the sale for new $1.2 billion share buyback program (in addition to the $1 billion program announced in March). The remaining proceeds will be used to lower debt.
"Throughout the sales process, we have been impressed with EG Group's professionalism, commitment to people, and understanding of the U.S. convenience retail market," said Mike Schlotman, Kroger's executive VP and CFO. "I can't stress enough how important to our success Kroger's convenience store management and associates have been, and we want to thank them for all of their contributions to our customers and our company."