U.S. grocery giant Kroger Co. has agreed to sell its Turkey Hill business to Texas based Peak Rock Capital.
The Turkey Hill brand covers a line of iced teas, fruit drinks, milk, frozen dairy treats and ice cream products, reports Yahoo Finance. Kroger also sells ice cream under several of its own brand names, which it collectively refers to as Our Brands, including Kroger, Private Selection and Simple Truth.
Peak Rock Capital will continue to operate Turkey Hill’s Conestoga, Pennsylvania facility, which employs nearly 800, under the same name.
The deal is expected to close in Kroger’s first quarter. Kroger will use the proceeds to reduce its debt.
Kroger announced that Turkey Hill could be on the block last August. It sold its convenience store business last April for US$2.15 billion.
Financial details of the Turkey Hill sale have not been made public.