WASHINGTON (dpa-AFX) - Kroger Co. (KR) Tuesday said it has agreed to sell its Turkey Hill business to an affiliate of private equity firm Peak Rock Capital.
Peak Rock Capital affiliate will continue to operate the Turkey Hill business out of its large Conestoga, Pennsylvania, 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.'
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.
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