US-based retail firm Kroger has agreed to sell its convenience store business unit to UK petrol and convenience store retailer EG Group for $2.15bn.
Kroger noted that its supermarket fuel centres and its Turkey Hill Dairy are not included in the sale.
The deal will cover Kroger’s convenience stores located in 18 US states, which also includes 66 franchise operations.
According to the deal, EG Group will continue to operate stores under its banner and intends to establish its North American headquarters in Cincinnati, Ohio.
The transaction is subject to customary closing conditions and expected to close by the first quarter of this year.
Last October, Kroger revealed that it is exploring new alternatives for its convenience store business, including a potential sale, in conjunction with Restock Kroger.
Kroger executive vice-president and chief financial officer Mike Schlotman said: “Our convenience store business has been a part of our company for many years.
“We want to thank our management team and associates for their enduring commitment to our customers, and for the contributions they have made to build our supermarket fuel business.
“As part of our regular review of assets, it has become clear that our strong convenience store business unit will better meet its full potential outside of our business.”
Kroger intends to repurchase shares and reduce its net total debt using net proceeds from the sale of its convenience store business unit.
EG Group founder and co-CEO Zuber Issa said: “Our business model is simple but effective – EG Group is creating a stronger relationship between consumers and leading retail brands they want to access.
“In the US, we aim to create a retail environment, which delivers convenience, provides value and serves as a retail destination offering excellent welfare to motorists who live and work near our petrol forecourt convenience retail stores.”