DENVER BUSINESS JOURNAL - Kroger Co., parent of Colorado's King Soopers and City Market grocery chains, has completed the sale of its convenience store business, including Loaf 'N Jug-branded stores.
The Cincinnati-based grocer (NYSE: KR) announced the planned sale of the division to Blackburn, England-based EG Group for $2.15 billion in February. It began the search for a buyer for its convenience stores in October as part of its Restock Kroger initiative to invest in its workforce and increase shareholder value.
The stores operate in Colorado and Wyoming under the Loaf 'N Jug brand, with some 170 locations. In other states, the stores operate under other brands, such as Turkey Hill, Kwik Shop, Tom Thumb and Quik Stop.
After taxes the sale will yield $1.7 billion. The majority of that cash – $1.2 billion – will be used to fund an accelerated share repurchase.
Kroger will pay $1.2 billion to Goldman Sachs & Co. LLC, who will make an initial delivery to Kroger of approximately 36.1 million common shares of Kroger stock. The total number of shares that Kroger will receive in the overall purchase is yet to be determined.
