Dairy brand Turkey Hill is being sold by the largest supermarket chain in the U.S. to an equity firm in Texas.
Kroger Co. announced the sale of Turkey Hill to Peak Rock Capital, a middle-market private equity firm based in Austin, Texas, on March 19. The sale of the Conestoga, Penn., dairy processor will go through an affiliate of the equity firm called Peak Rock Capital.
Despite the change in ownership, the Pennsylvania facility that employs nearly 800 full-time, part-time and seasonal associates will still be operated under the Turkey Hill brand.
“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,” says 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.”
Products produces by Turkey Hill include milk, frozen dairy treats and a variety of ice cream products at its manufacturing and distribution facility. There are also fruit drinks and iced teas under the brand.
“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,” says Robert Pistilli, Managing Director of Peak Rock Capital.
Anthony DiSimone, Chief Executive Officer of Peak Rock Capital, adds, “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.”
It was announced in 2018 by Kroger that the company intended to look at its options with Turkey Hill, including a sale of the business.
The sale of Turkey Hill is expected to close during Kroger’s first quarter and the after-tax proceeds will be used to reduce debt.