Kevin's View: April 2018

Friday, April 20, 2018

Kroger Completes Sale of Convenience Store Business to EG Group

Press Release

CINCINNATI, OH - The Kroger Co. (NYSE: KR) announced today that it had completed the sale of its convenience store business unit to EG Group for $2.15 billion.
After-tax proceeds total $1.7 billion. $1.2 billion of the proceeds will be used to fund an accelerated share repurchase ("ASR") program.

"Throughout the sales process, we have been impressed with EG Group's professionalism, commitment to people, and understanding of the U.S. convenience retail market," said Mike Schlotman, Kroger's executive vice president and chief financial officer. "I can't stress enough how important to our success Kroger's convenience store management and associates have been, and we want to thank them for all of their contributions to our customers and our company."
Kroger announced in October 2017 its intention to explore strategic alternatives for its convenience store business, including a potential sale, in conjunction with Restock Kroger. In February, Kroger and EG Group announced a definitive agreement for the sale of Kroger's convenience store business unit to EG Group.
Kroger entered into an ASR agreement today with Goldman Sachs & Co. LLC. ("Goldman"), pursuant to which on April 24, 2018, Kroger will pay $1.2 billion to Goldman, who will make an initial delivery to Kroger of approximately 36.1 million Kroger common shares. The total number of shares that Kroger ultimately will receive under the ASR will be based generally on the average of the daily volume-weighted average prices of shares traded during the term of the agreement, subject to a collar provision that will establish minimum and maximum numbers of shares to be repurchased. The $1.2 billion ASR is an additional repurchase authorization approved by Kroger's Board of Directors, which is incremental to the $1 billion share repurchase program announced on March 15, 2018.
Kroger will use the balance of the after-tax proceeds to lower its net total debt to adjusted EBITDA ratio.
"Kroger is committed to creating shareholder value," said Mr. Schlotman. "We are returning a significant amount of capital to shareholders through a $1.2 billion accelerated share repurchase program authorized by our Board of Directors."
The Transition Services Agreement (TSA) Kroger has in place with EG Group will not have a material effect on the company's 2018 results, nor will it have any effect on Kroger's 2018 net earnings per diluted share guidance. The TSA covers a variety of services for varying lengths of time.
Included in the sale were 762 convenience stores, including 66 franchise operations, operating in 18 states and employing 11,000 associates under the following banner names: Turkey Hill, Loaf 'N Jug, Kwik Shop, Tom Thumb and Quik Stop. Kroger's supermarket fuel centers and its Turkey Hill Dairy were not included in the sale. EG Group will establish their North American headquarters in Cincinnati, Ohio and continue to operate stores under their established banner names.

Disclaimer: Kevin Surbaugh is an independent sales representative of Youngevity(YGYI) and is a shareholder in the publicly traded company. He also has positions in Coca-Cola (KO), Berkshire-Hathaway (BRK.B); (BRK.A), Simon Property Group (SPG), WalMart (WMT), but has no positions in any other stocks mentioned, and no plans to initiate any positions within the next 96 hours.
--- go ahead share your thoughts with me now, my ears are open. I'm always eager to hear what you think.

Wednesday, April 18, 2018

Thank You Alexia Thornton

Shout Out and Special Thanks

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Tuesday, April 17, 2018

Cutting the Cable Bill

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Monday, April 9, 2018

Kroger Announces Several Steps to Combat Opioid Abuse

PRNewswire

CINCINNATI, OH -- The Kroger Co. (NYSE: KR) Family of Pharmacies today announced it is taking several steps as part of a comprehensive commitment to help communities combat the nationwide opioid epidemic.
Kroger currently stocks naloxone, an opioid overdose-reversing drug, in its 2,300 pharmacies across 35 states and the District of Columbia with more than 1,900 of those locations dispensing naloxone without a prescription – making it easier for families, friends, caregivers and at-risk individuals to have the drug on hand if it is needed to save a life. The U.S. Surgeon General urges more Americans to carry the lifesaving medication that can reverse the effects of an opioid overdose.

We applaud the U.S. Surgeon General's Advisory on Naloxone and Opioid Overdose, knowing the epidemic continues to devastate communities across our country. A person loses their life from an opioid overdose every 12.5 minutes," said Colleen Lindholz, Kroger's president of pharmacy and The Little Clinic. "We know that pharmacists are the most accessible health professionals to the public and play a vital role in providing access to the life-saving drug naloxone."
According to the U.S. Department of Health and Human Services, an estimated 2.1 million people in the U.S. struggle with an opioid-use disorder and rates of opioid overdose deaths are rapidly increasing.
Kroger today also announced plans to host drug take-back events at store locations across the country on April 28, in partnership with Cardinal Health and coinciding with the U.S. Drug Enforcement Administration's National Prescription Drug Take-Back Day.
Kroger is also partnering with EVERFI and Generation Rx to support drug prevention programs for high school students in certain markets.
"Every day in our stores and pharmacies, in large ways and small, Kroger is committed to being a part of the solution and helping people live healthier lives," added Ms. Lindholz.