Kroger sells C-store business
After announcing it intended to explore strategic alternatives for its C-store business, including a potential sale in October 2017, The Kroger Co. announced it had entered into a definitive agreement with UK-based EG Group, a privately-held petrol forecourt convenience store retailer to sell its C-store business for $2.15 billion on Feb. 5. The transaction is expected to close during the first fiscal quarter.
As part of the agreement, EG Group will establish their North American headquarters in Cincinnati and continue to operate stores under their established banner names. Kroger’s supermarket fuel centers and its Turkey Hill Dairy are not included in the sale.
“Our convenience store business has been a part of our company for many years. We want to thank our management team and associates for their enduring commitment to our customers, and for the contributions they have made to build our supermarket fuel business,” said Mike Schlotman, Kroger’s evp and CFO. “As part of our regular review of assets, it has become clear that our strong convenience store business unit will better meet its full potential outside of our business,” Schlotman said.
Mohsin Issa, Founder and co-CEO of EG Group, said, “This is an exciting time for EG Group, the entry into the US market presents a fantastic opportunity to deliver a successful retail offer to consumers across the various states.”
“We have had much success across Europe and firmly believe the Kroger assets present a fantastic foundation to overlay our retail experience and know-how in the US,” Issa said. “We are committed to investing in the Kroger network, partnering with leading retail brands and working with the exceptional management team and associates transferring across to deliver a comprehensive retail offer,” he added.