Kroger completes Turkey Hill sale

30-Apr-2019 - Last updated on 30-Apr-2019 at 06:12 GMT

Kroger intends to use the after-tax cash proceeds to reduce its debt. Pic: Getty/martinrlee

Related tags Kroger Ice cream acquistions Sales

After announcing that it may drop its flagship dairy brand last August, Kroger sold Turkey Hill to Peak Rock Capital earlier this year. The agreement was completed this week for $215m.

Kroger has sold ice cream, frozen yogurt, sherbet, iced tea, fruit drinks and milk products under the Turkey Hill brand since 1985. In August 2018 it announced that it was exploring sale options, saying that it had “the potential for greater growth” outside Kroger.

Peak Rock Capital agreed to acquire the brand in March. At the time, Turkey Hill employed nearly 800 full-time, part-time and seasonal workers and Peak Rock planned to retain them all and continue operations out of the Pennsylvania facility.

Erin Sharp, group VP of Kroger Manufacturing, said, "We want to thank Turkey Hill's associates for their dedication and their many contributions to the company. We look forward to the continued success of the Turkey Hill brand."

Anthony DiSimone, CEO of Peak Rock, said in March, "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 complimentary acquisitions to extend the product and brand portfolio."

The sale closed for $215m and Kroger intends to use the after-tax cash proceeds to reduce its debt.