Kroger To Sell 700 Convenience Stores To U.K.'s EG Group For $2.15B
The Kroger Co. entered an agreement this week to sell its convenience store portfolio to U.K. convenience store retailer EG Group for $2.15B.
“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,” Kroger Executive Vice President and Chief Financial Officer Mike Schlotman said in a statement.
Kroger first announced it would be exploring strategic business alternatives in October and was also rumored to be considering possibly teaming up with Chinese retailer Alibaba in order to combat the Amazon effect.
This transaction will include the sale of more than 700 non-Kroger stores in 18 states across, including brands such as Kwik Shop, Loaf ‘N Jug, Turkey Hill, Quik Stop and Tom Thumb.
In addition to acquiring Kroger's stores, EG Group will also establish a North American headquarters in Cincinnati. The deal marks its first entrance into the U.S. market.
“This is an exciting time for EG Group, the entry into the U.S. market presents a fantastic opportunity to deliver a successful retail offer to consumers across the various states,” EG Group founder and co-CEO Mohsin Issa said.
The transaction is anticipated to close within the first quarter of Kroger’s fiscal year.