Kroger to sell convenience store unit to EG Group
Leading US supermarket chain Kroger has announced that it has entered into a definitive agreement with convenience store retailer EG Group to sell its own convenience store business for $2.15bn.
"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," said Mike Schlotman, Kroger's Executive Vice President and Chief Financial Officer.
In line with this, EG Group will establish its North American headquarters in Cincinnati, Ohio - the location of Kroger's own headquarters - and continue to operate the stores under Kroger's established brand name.
"One of the most important considerations in our decision-making process was continued operations to ensure minimal disruption to our associates," Schlotman continues. "We are very pleased the EG Group plans to establish their North American headquarters in Cincinnati."
Kroger first announced its intentions to potentially sell the business in October of last year, with a deal now having come to fruition for the $4bn revenue unit.
The transaction is expected to close during Q1 of Kroger's fiscal year.