Kroger’s convenience store chain sells for $2.15bn
The Kroger Company, an American firm based in Cincinnati, has announced the selling of its convenience store business.
The UK’s EG Group, located in Blackburn, has purchased the business for US$2.15bn.
The deal will see EG Group set up its North American Headquarters in Ohio’s Cincinnati, and maintain the previous businesses’ names.
“One of the most important considerations in our decision-making process was continued operations to ensure minimal disruption to our associates,” commented Kroger’s Executive Vice-President and Chief Financial Officer, J. Michael Schlotman.
“We are very pleased the EG Group plans to establish their North American headquarters in Cincinnati.”
SEE ALSO:
-
Amazon beat Walmart to lead the US online grocery market in 2017
-
Kroger to launch digital shelf displays in about 200 stores in 2018
“EG Group is also a recognized international petrol forecourt convenience operator and they have a commercial model that clearly looks to enhance the consumer offer by working with leading retail brands customers know and trust.”
Kroger’s convenience business consists of 784 stores spanning across 18 states. The stores combined made a total of $4bn in sales in 2016.
“This is good for our associates across the country and for our headquarter city of Cincinnati. Throughout the process we were impressed with the EG Group’s professionalism, investment commitment and more importantly their understanding of the U.S. convenience retail market,” Schlotman added.
“We now look forward to working with them closely to ensure a smooth transition for associates.”
