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Kroger reaches deal to sell Turkey Hill business

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CINCINNATI  — Kroger Co. has reached an agreement to sell its Turkey Hill food manufacturing business to an an affiliate of Peak Rock Capital.

The deal calls for the Peak Rock Capital affiliate to continue operating Turkey Hill, which produces a full line of popular iced teas, fruit drinks, milk, frozen dairy treats and a variety of ice cream products. The new owners will continue to run the business’ manufacturing and distribution facility in Conestoga, Pa., which has nearly 800 full-time, part-time and seasonal associates.

“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.”

The deal is expected to close during Kroger’s first quarter, with the after-tax proceeds going toward the reduction of 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,” said Robert Pistilli, managing director of Peak Rock Capital. “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.”

Added Peak Rock Capital CEO Anthony DiSimone: “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.”

Kroger had announced in August that it planned to explore strategic options for its Turkey Hill business, including a potential sale.

 


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