HUTCHINSON, Kan. — Just days after reports surfaced that Casey’s General Stores placed a bid for Kroger’s C-Store sector, a British convenience store operator, EG Group, is buying the convenience store unit for $2.15 billion as it expands into the U.S.

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. EG won out over Casey’s and 7-Eleven for the chain of stores, which includes all Kwik Shops.

Mike Schlotman, Kroger’s executive vice president and chief financial officer commented:
“One of the most important considerations in our decision-making process was to enable continued operations to ensure minimal disruption to our associates. We are very pleased the EG Group plans to establish their North American headquarters in Cincinnati. EG Group is a recognized international petrol forecourt convenience operator and they have a commercial model which clearly looks to enhance the consumer offer by working with leading retail brands customers know and trust.

This transaction is good for our associates across the country and for our headquarter city of Cincinnati. Throughout the process we were impressed with the EG Group’s professionalism, investment commitment and more importantly their understanding of the US convenience retail market. We now look forward to working with them closely to ensure a smooth transition for associates.”

EG Group expects to close the purchase of the Kroger’s business unit early this year. The acquisition includes 784 stores in 18 states, employing 11,000 workers, and includes 66 franchises.

All stores will remain under the Kwik Shop banner and the leadership of Kwik Shop will stay in tact according to Kroger Spokesperson Sheila Lowery. The fuel centers located at Dillon’s Stores including the Marketplace in Hutchinson will stay under the Dillon’s banner and fuel rewards will also remain at those facilities although no decision has been made on if the program will still be available at Kwik Shops.

Mohsin Issa, EG Group Founder and co-CEO expressed: “This is an exciting time for EG Group, the entry into the U.S. market presents a fantastic opportunity to deliver a successful retail offer to consumers across the various states. We have had much success across Europe and we firmly believe the Kroger assets present a fantastic foundation to overlay our retail experience and know-how in the U.S. We are committed to investing in the Kroger network, partnering with leading retail brands and working with the exceptional management team and associates transferring across to deliver a comprehensive retail offer.”

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