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Kroger has announced that it has now completed the $2.15 billion sale of its convenience store business to EG Group.
Kroger announced in October 2017 that it was considering the sale of the unit, and agreed a deal with EG Group in February.
The sale includes 762 convenience stores operating under the Turkey Hill, Loaf ‘N Jug, KwikShop, Tom Thumb and QuikStop brands, including 66 franchise operations operating in 18 states.
Kroger stressed that the sale did not include Kroger’s supermarket fuel centers and its Turkey Hill Dairy.
Meanwhile, the company’s board of directors said that $1.2 billion of the proceeds garnered by the sale will be used to fund an accelerated share repurchase programme.
Mike Schlotman, Kroger’s executive vice-president and chief financial officer said: “Throughout the sales process, we have been impressed with EG Group’s professionalism, commitment to people, and understanding of the US convenience retail market.
“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 is committed to creating shareholder value. We are returning a significant amount of capital to shareholders through a $1.2 billion accelerated share repurchase program authorized by our board of directors.”
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