Turkey Hill Dairy of Conestoga, Pennsylvania, is being acquired by a Texas-based private equity firm for an undisclosed price, it was announced Tuesday.
Peak Rock Capital, which invests mainly in food-and-beverage firms, intends to complete the purchase of Turkey Hill from Kroger by the end of May.
As part of the agreement, Peak Rock will continue to operate Turkey Hill out of its Conestoga headquarters and retain the Turkey Hill brand.
Turkey Hill spokeswoman Andrea Nikolaus said employees “are excited about the new possibilities and opportunities that the sale will provide for our future.
“And for now, it’s business as usual for us — we are going to keep making and sharing the great frozen treats and drinks that our customers have come to expect from Turkey Hill,” she said in an email.
Turkey Hill’s current management, including President John Cox, will remain in place, according to Nikolaus. “There are no changes planned for our products or our leadership team,” she said.
Peak Rock Managing Director Robert Pistilli, in a statement, described Turkey Hill as “a premier brand with an established reputation for quality, flavor variety and authenticity within the large and growing ice cream and refrigerated drinks space.”
Peak Rock made clear that while Turkey Hill already is a leader in its industry — producing the nation’s fourth largest selling brand of ice cream and fifth largest selling brand of iced tea — Peak Rock sees plenty of potential there.
“We believe that Turkey Hill represents an excellent platform for growth through near-term organic initiatives and strategic acquisitions. We will be aggressively pursuing complementary acquisitions to extend the product and brand portfolio,” said CEO Anthony DiSimone in a statement.
Turkey Hill, with 800 employees here, will be the eighth food-and-beverage company in Peak Rock’s portfolio.
Kroger had said last August that it was offering the dairy for sale to help it focus on its core operation, its supermarkets.
The dairy was founded in 1931. The dairy diversified into convenience stores in 1967. Kroger acquired both the dairy and the Minit Markets in 1985.
Kroger spun off its entire convenience-story portfolio, including the Minit Markets, to the British firm EG Group in February 2018 for $2.15 billion.
Turkey Hill Dairy recently became the nation’s first major dairy to get all of its electricity from renewable sources, LNP reported two weeks ago.
The dairy also disclosed that it soon will be selling its ice cream in every state but Hawaii. Some 450 Fred Meyers, Ralph’s, QFC and Food 4 Less stores in California, Oregon, Washington, Alaska, Idaho and Nevada will get the popular product by mid year.
Turkey Hill Dairy does not disclose is annual revenue. In 2013, LNP reported that its annual revenues exceeded $300 million.