Kroger bagging its 762-location convenience store unit in $2.15B sale

British convenience store operator EG Group is buying Kroger's convenience store unit for $2.15 billion as it expands into the U.S., the two companies announced Monday.

Kroger and other grocery store operators have been facing tougher competition from companies including Walmart and Amazon. The Cincinnati company has been considering a sale of its convenience store operations since October.

The 762 stores in 18 states employ 11,000 associates and operate under the banners Turkey Hill, Loaf 'N Jug, Kwik Shop, Tom Thumb and Quik Stop. Kroger's convenience store business generated revenue of $4 billion, including selling 1.2 billion gallons of fuel, in 2016.

Only three of the stores—each under the Turkey Hill brand—are located in Indiana, a Kroger spokesman told IBJ on Monday.

EG Group expects to close the purchase of the Kroger's business unit early this year. It will base its North American headquarters in Cincinnati.

Kroger plans to use proceeds from the sale to buy back stock and pay down debt.

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