The Kroger Co. announced Friday it has completed the sale of its convenience store business unit, which includes Kwik Shop, to EG Group for $2.15 billion.
The company said after tax proceeds total $1.7 billion. $1.2 billion of the proceeds will be used to fund an accelerated share repurchase (“ASR”) program.
Kroger Executive Vice President and Chief Financial Officer Mike Schlotman said throughout the sales process, they have been impressed with EG Group’s professionalism, commitment to people, and understanding of the U.S. convenience retail market.
“I can’t stress enough how important to our success Kroger’s convenience store management and associates have been, and we want to thank them for all of their contributions to our customers and our company.”
In February, Kroger and EG Group announced a definitive agreement for the sale of Kroger’s convenience store business unit to EG Group.
A Dillons spokeswoman tells KSNT News customers will still be able to earn fuel points when shopping at Dillons stores and use them towards fuel purchases at the transitioning stores.
Fuel points will also be redeemable at Dillons Fuel Centers, too.
Included in the sale were 762 convenience stores, including 66 franchise operations, operating in 18 states and employing 11,000 associates under the following banner names: Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop. Kroger’s supermarket fuel centers and its Turkey Hill Dairy were not included in the sale.
EG Group will establish their North American headquarters in Cincinnati, Ohio and continue to operate stores under their established banner names.