EG Group is set to acquire nearly 800 convenience stores operated by USA based Kroger Co for $2.15 billion. Kroger is selling as it sharpens focus on its mainstay grocery business during a brutal price war between Kroger and chief rival Walmart , discounters Lidl and Aldi, and Whole Foods, which is owned by Amazon.com Inc. Kroger plans to use the proceed to lower its debt and to buy back shares. Kroger also plans to restock its nearly 2800 brick and mortar supermarkets while cutting prices and boosting in store technology simultaneously.
Turkey Hill, Loaf ‘N Jug, Kwik Shop and Tom Thumb are some of the convenience store businesses Kroger owns and it had annual revenue of $4 billion. However supermarket fuel centers and Turkey HIll Dairy are not part of the Kroger sale.
Bank of America Merrill Lynch and Barclays were the financial advisor of EG while Goldman Sachs was the financial advisor for Kroger.
About EG Group
One of the Europe’s leading convenience retail stores, EG Group has over 1450 sites. Headquartered in the UK, EG Group owns are operates gas stations.
Founded in 1883, Kroger together with its subsidiaries operates as a retailer in the United States. Headquartered in the US, Kroger operates supermarkets, multi-department stores, jewelry stores, and convenience stores. Employing around 449000 employees, Kroger also manufactures and processes food products for sale in its supermarkets.