Kroger announces new $1.2 billion share repurchase program, paid for with convenience store sale
Kroger Co. said Friday that it has approved a new $1.2 billion share buyback program, in addition to the $1 billion program announced March 15. The grocery giant will use the proceeds from the sale of its convenience store business to EG Group. That deal, which was first announced in February, is worth $2.15 billion with after-tax proceeds of $1.7 billion. The remaining proceeds will be used to lower debt. The sale includes 762 convenience stores including 66 franchise operations across 18 states with 11,000 workers. Stores include Loaf 'N Jug, Kwik Shop and Tom Thumb. EG Group will continue to operate the stores under their existing names. Kroger shares are up 2.1% in Friday trading, but down nearly 12% for the year so far. The S&P 500 index is up 0.7% for 2018 to date.