After first placing its Turkey Hill division on the market late last year, Kroger is officially bidding adieu to the dairy business. This week, the grocer announced that Peak Rock Capital, an Austin, Texas-based private equity firm, has agreed to purchase Turkey Hill for an undisclosed amount of money.
“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."
Turkey Hill offers a full line of fruit drinks, iced teas, milk, frozen dairy treats, and ice cream, all of which will continue to be sold under the Turkey Hill brand following the sale.
"We believe that Turkey Hill represents an excellent platform for growth through near-term organic initiatives and strategic acquisitions,” Anthony DiSimone, Chief Executive Officer of Peak Rock Capital, said. “We will be aggressively pursuing complimentary acquisitions to extend the product and brand portfolio."
According to a press release, as part of the agreement, the Peak Rock Capital affiliate will continue to operate the Turkey Hill business out of its Conestoga, Pennsylvania, facility with the brand's 800 full-time, part-time, and seasonal associates.
"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," Robert Pistilli, Peak Rock Capital’s Managing Director, added. "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."
The transaction is expected to close during Kroger’s first quarter.
What does this sale mean for Kroger's dairy division? Deli Market News will continue to bring you the latest as it relates to deli, dairy, bakery, and specialty foods.