CINCINNATI and AUSTIN, Texas, April 29, 2019 (PRNewswire) — The Kroger Co. announced Monday 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.