Kroger Sheds Turkey Hill Business, Processing Plant

American food manufacturer and retailer The Kroger Company recently entered into an agreement to sell its Turkey Hill business and some related manufacturing assets to to an affiliate of private equity firm Peak Rock Capital, the companies announced in separate press releases Tuesday. 

“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,” Kroger Manufacturing Group Vice President Erin Sharp said in a statement. “Throughout this process, we were extremely impressed with Peak Rock’s professionalism and vision for the future of the Turkey Hill business.”

Products sold under the Turkey Hill brand include ice cream and frozen desserts, dairy products, and variety of beverages. Under the terms of the deal, Peak Rock will take possession of a Turkey Hill processing plant in Conestoga, PA. Some 800 workers at the facility will be retained through the transfer of ownership. 

“Turkey Hill represents an exciting opportunity to invest in a premier brand with an established reputation for quality, flavor variety, and authenticity, within the large and growing ice cream and refrigerated drinks space,” Robert Pistilli, managing director of Peak Rock, said in a release. “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.”

The sale of the business is slated to close in the first quarter of Kroger’s fiscal year. Following completion of the transaction, Kroger said it plans to use its after-tax proceeds to reduce its debt. 

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