Cincinnati — The Kroger Co. has agreed to sell its c-store business to Euro Garages Ltd. (EG Group) for $2.15 billion, the grocery retailer reports. The deal is expected to close during the first quarter of Kroger’s fiscal year.
As part of the deal, EG Group will setup a North American headquarters in Cincinnati and will continue to operate the locations under their existing banners. Kroger operates its c-stores in 18 states, including 66 franchise stores, which generated $4 billion in revenue during 2016, the company reports.
“Our business model is simple but effective — EG Group is creating a stronger relationship between consumers and leading retail brands they want to access. In the U.S. we aim to create a retail environment which delivers convenience, provides value and serves as a retail destination offering excellent welfare to motorists who live and work near our petrol forecourt convenience retail stores,” says Zuber Issa, EG Group founder and co-CEO.
Kroger reports that supermarket fuel centers and the Turkey Hill Dairy business are not part of the sales.