THE PROSPECT VILLAGE SHOPPING CENTER HAS BEEN ACQUIRED BY KROGER

ABOUT THE DEAL:

The Kroger Co. (NYSE: KR) has acquired The Prospect Village Shopping Center. Built in 2000, the Center is approximately 153,486 square feet, and anchored by a newly renovated Kroger Marketplace. Located on Hwy 42 in northeast Jefferson County in Prospect, Kentucky, the Center is conveniently located in one of the most affluent areas of the state of Kentucky. The Center is approximately 90 percent occupied with several other national retailers, including Starbucks Coffee, Snap Fitness, Subway, and Great Clips to name a few.

The Kroger Co. is one of the world’s largest grocery retailers, with fiscal 2011 sales of $82.1 billion. The Kroger Co. Family of Stores spans many states with store formats that include grocery and multi-department stores, discount, convenience stores and jewelry stores. The Kroger Co. operates under nearly two dozen banners, all of which share the same belief in building strong local ties and brand loyalty with their customers. Total sales, including fuel, increased 5.9% to $21.8 billion in the third quarter of 2012 compared with $20.6 billion for the same period last year. Total sales, excluding fuel, increased 3.7% in the third quarter of 2012 over the same period last year. At the end of Fiscal 2012, Kroger operated (either directly or through its subsidiaries) 2,424 supermarkets, 1,169 of which had fuel centers. Approximately, 45% of these supermarkets were operated in company-owned facilities, including some company-owned buildings on leased land.

Allston Advisory Group served as the exclusive financial advisor to the Sellers, Montfort Helm Enterprises, LLC. After an extensive valuation assessment and identification of both strategic and financial buyers, Allston marketed the Center to national, regional, and local investor groups. A premium valuation was realized through a formal auction process; ultimately, The Kroger Co. solely exercised its right of first refusal. With this acquisition, The Kroger Co. strengthens its foothold in the Louisville market with the intention of expanding the Center’s facilities to include fuel sales.

ABOUT ALLSTON ADVISORY GROUP, LLC:

Allston Advisory Group, LLC is an experienced M&A advisory firm providing mergers & acquisitions, business valuations, and exit strategies, to lower middle market companies. The firm has an established track record of serving corporate clients across a broad spectrum of industries throughout the United States. Allston Advisory Group has the experience, professional fortitude, and quality of work that enable the firm to consistently deliver high-level results to its clients.

For additional information on this deal, please contact one of our advisors.