CINCINNATI, Ohio — The Kroger Co. (NYSE: KR) and Peak Rock Capital of Austin, Texas, have announced a definitive agreement for the sale of Kroger’s Turkey Hill business to an affiliate of Peak Rock Capital.
As part of the agreement, the Peak Rock Capital affiliate will continue to operate the Turkey Hill business at its large Conestoga, Pa., facility with its nearly 800 full-time, part-time and seasonal associates and under the 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.”
Turkey Hill produces a line of 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. The closing is expected during the first quarter and the after-tax proceeds will be used to reduce Kroger debt.