Turkey Hill Dairy Business No Longer Part of Kroger
An affiliate of middle-market private-equity firm Peak Rock Capital has completed the previously revealed acquisition of the Turkey Hill Dairy business, a manufacturer and distributor of ice cream and refrigerated drinks for the retail, foodservice and alternative channels, from the Kroger Co.
Conestoga, Pa.-based Turkey Hill has a diverse customer base, including blue-chip grocers, distributors, wholesalers and convenience stores.
Kroger disclosed that it received $215 million from the sale of the business, the after-tax cash proceeds of which it plans to use to reduce debt.
“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,” noted Robert Pistilli, managing director of Austin, Texas-based Peak Rock. “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.”
Added Peak Rock CEO Anthony DiSimone: “This transaction further exemplifies Peak Rock’s deep experience and capability in executing complex carve-out transactions. It also highlights our continued interest in attractive assets in the food and beverage industry. We believe that Turkey Hill represents an excellent platform for growth through near-term organic initiatives and strategic acquisitions. We will be aggressively pursuing complementary acquisitions to extend the product and brand portfolio.”
The Turkey Hill acquisition is Peak Rock’s eighth current investment in the food and beverage industry.
Cincinnati-based Kroger – No. 2 on Progressive Grocer’s 2018 list of the top grocers in the United States, first floated the idea of selling the dairy business last August, and the impending acquisition by Peak Rock was revealed in March. The sale of Turkey Hill, as well as that of its convenience store business in a separate transaction, is in line with the grocer’s Restock Kroger initiative, which included a review of assets that might be of more value outside rather than within the company.