Kroger Co said March 19 that it agreed to sell its Turkey Hill business to Peak Rock Capital. Financial terms weren’t announced. Peak Rock has agreed to continue operating the Turkey Hill business out of its Conestoga, Pennsylvania facility with its nearly 800 associates and under the same Turkey Hill brand.
Press Release – Kroger and Peak Rock Capital Announce Definitive Agreement for Purchase of Kroger‘s Turkey Hill Business
March 19, 2019
The Kroger Co. (NYSE: KR) and Peak Rock Capital, a leading middle-market private equity firm based in Austin, Texas, today announced a definitive agreement for the sale of Kroger’s Turkey Hill business to an affiliate of Peak Rock Capital.
As part of the sale agreement, the Peak Rock Capital affiliate will continue to operate the Turkey Hill business out of its large Conestoga, Penn., facility with its nearly 800 full-time, part-time and seasonal associates and under the same recognizable 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,” said Erin Sharp, group vice president 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.”
Robert Pistilli, Managing Director of Peak Rock Capital, said, “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 standalone entity and partnering with Turkey Hill’s management team to drive significant growth through continued product innovation.”
Anthony DiSimone, Chief Executive Officer of Peak Rock Capital, added, “We believe that Turkey Hill represents an excellent platform for growth through near-term organic initiatives and strategic acquisitions. We will be aggressively pursuing complimentary acquisitions to extend the product and brand portfolio.”
Turkey Hill produces a full line of popular iced teas, fruit drinks, milk, frozen dairy treats and a variety of ice cream products at its manufacturing and distribution facility.
Kroger announced in August 2018 its intention to explore strategic options for its Turkey Hill business, including a potential sale.
Closing is expected during Kroger’s first quarter and the after-tax proceeds will be used to reduce debt.
The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The company expects the transaction to close quickly.