On March 19, 2019 The Kroger Co. and middle-market private equity firm Peak Rock Capital announced a definitive agreement for the sale of Kroger’s Turkey Hill business to an affiliate of Peak Rock Capital. Turkey Hill produces a full line of popular iced teas, fruit drinks, milk, frozen dairy treats and a variety of ice cream products at its manufacturing and distribution facility.
The Peak Rock Capital affiliate will continue to operate the Turkey Hill business out of its Conestoga, Penn., facility with nearly 800 full-time, part-time and seasonal associates and under the Turkey Hill brand. The agreement is expected to close during Q1 with proceeds used to reduce debt.
“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,” Sharp said.
Robert Pistilli, Managing Director of Peak Rock Capital, said, “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. 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. We will be aggressively pursuing complimentary acquisitions to extend the product and brand portfolio.”