Kroger closes deal on sale of 762 c-stores to EG Group
Kroger recently completed the sale of its convenience store business unit to EG Group for $2.2 billion. After tax proceeds total $1.7 billion. Of these proceeds, $1.2 billion will be used to fund an accelerated share repurchase program, the Cincinnatti-based retailer reported.
Included in the sale were 762 convenience stores, including 66 franchise operations, operating in 18 states under the following banner names: Turkey Hill, Loaf 'N Jug, Kwik Shop, Tom Thumb and Quik Stop.
"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," Mike Schlotman, Kroger's executive vice president and CFO, said. "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."
Kroger's supermarket fuel centers and its Turkey Hill Dairy were not included in the sale.
EG Group will establish their North American headquarters in Cincinnati and continue to operate stores under their established banner names.
Kroger announced in October 2017 its intention to explore strategic alternatives for its convenience store business, including a potential sale, in conjunction with Restock Kroger. In February, Kroger and EG Group announced a definitive agreement for the sale of Kroger's convenience store business unit to EG Group.
Included in the sale were 762 convenience stores, including 66 franchise operations, operating in 18 states under the following banner names: Turkey Hill, Loaf 'N Jug, Kwik Shop, Tom Thumb and Quik Stop.
"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," Mike Schlotman, Kroger's executive vice president and CFO, said. "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."
Kroger's supermarket fuel centers and its Turkey Hill Dairy were not included in the sale.
EG Group will establish their North American headquarters in Cincinnati and continue to operate stores under their established banner names.
Kroger announced in October 2017 its intention to explore strategic alternatives for its convenience store business, including a potential sale, in conjunction with Restock Kroger. In February, Kroger and EG Group announced a definitive agreement for the sale of Kroger's convenience store business unit to EG Group.