British gas station operator EG Group has completed the acquisition of convenience store business unit Kroger for $2.15bn in the US.
The deal covers 762 convenience stores, including 66 franchise operations in 18 US states along with Turkey Hill, Kwik Shop, Tom Thumb, Quik Stop and Loaf ‘N Jug brands.
The retail chain’s supermarket fuel centres and Turkey Hill Dairy brand were exempted from the transaction.
Of the total $2.15bn, the convenience store chain will use $1.2bn to fund its accelerated share repurchase (ASR) programme with Goldman Sachs and the remaining amount to lower its net total debt.
The new ASR programme was approved by Kroger’s board of directors as an addition to its $1bn ASR programme announced on 15 March this year.
Kroger executive vice-president and chief financial officer Mike Schlotman said: “Throughout the sales process, we have been impressed with EG Group’s professionalism, commitment to people, and understanding of the US convenience retail market.
“I can’t stress enough how important to our success Kroger’s convenience store management and associates have been, and we want to thank them for all of their contributions to our customers and our company.
“Kroger is committed to creating shareholder value. We are returning a significant amount of capital to shareholders through a $1.2bn accelerated share repurchase programme authorised by our board of directors.”
Following the transaction, EG Group plans to operate Kroger stores under their banner by establishing North American headquarters in Cincinnati, Ohio.