Kroger Selling Turkey Hill Business
The Kroger Co. is selling its Turkey Hill dairy business to an affiliate of Peak Rock Capital, an Austin, Texas-based private-equity firm. According to the sale agreement, the Peak Rock Capital affiliate will continue to operate Turkey Hill out of its Conestoga, Pa., facility, retaining the nearly 800 full-time, part-time and seasonal associates who work there and manufacturing products under the Turkey Hill brand.
“We believe this is the right step to ensure the Turkey Hill business can meet its full potential and continue to grow its successful ice cream and beverage brands,” noted Erin Sharp, group VP for Kroger Manufacturing. “Throughout this process, we were extremely impressed with Peak Rock’s professionalism and vision for the future of the Turkey Hill business. We look forward to working with them to ensure a smooth and successful transition for all parties.”
Added Robert Pistilli, managing director of Peak Rock Capital: “Turkey Hill represents an exciting opportunity to invest in a premier brand with an established reputation for quality, flavor variety and authenticity, within the large and growing ice cream and refrigerated drinks space. We are impressed with the accomplishments of the business under the stewardship of Kroger and look forward to completing a seamless transition of the business to a stand-alone entity and partnering with Turkey Hill’s management team to drive significant growth through continued product innovation.”
“We believe that Turkey Hill represents an excellent platform for growth through near-term organic initiatives and strategic acquisitions,” said Peak Rock Capital CEO Anthony DiSimone. “We will be aggressively pursuing complimentary acquisitions to extend the product and brand portfolio.”
Turkey Hill manufactures a full line of iced teas, fruit drinks, milk, frozen dairy novelties and a range of ice cream products. Kroger revealed last August that it planned to explore strategic options for the business, including a potential sale. In April 2018, the company sold 762 convenience stores, including 260 operated under the Turkey Hill banner, to U.K. gasoline and convenience retailer EG Group for $2.15 billion.
The deal is expected to close during the grocer’s first quarter, and the after-tax proceeds will be used to reduce debt. Goldman Sachs & Co. LLC is acting as Kroger’s exclusive financial advisor.
Cincinnati-based Kroger employs nearly half a million associates who serve nine customers through a seamless digital shopping experience and 2,800 retail food stores under a variety of banner names. The company is No. 2 on Progressive Grocer’s 2018 Super 50 list of the top grocers in the United States.