Kroger has secured a deal to sell its Turkey Hill business to an affiliate of private equity firm Peak Rock Capital.
The announcement comes seven months after the US retailer said it would explore strategic options for the unit, including a potential sale.
Turkey Hill produces a range of iced teas, fruit drinks, milk, frozen dairy products and ice creams. As part of the sale agreement, the Peak Rock Capital affiliate will continue to operate the Turkey Hill business out of its Conestoga, Pennsylvania, facility.
“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 produces a range of iced teas, fruit drinks and ice creams.
Peak Rock Capital managing director Robert Pistilli said: “Turkey Hill represents an exciting opportunity to invest in a premier brand with an established reputation for quality, flavour variety, and authenticity, within the large and growing ice cream and refrigerated drinks space.
“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.”
Anthony DiSimone, chief executive officer of Peak Rock Capital, added: “We believe that Turkey Hill represents an excellent platform for growth through near-term organic initiatives and strategic acquisitions.”
Last year, Austin-based Peak Rock Capital acquired pretzel producer Pretzels as well as Louisiana Fish Fry Products. An affiliate of the firm also bought Tyson Foods’ pizza crust manufacturing business.
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