Dunnhumby, Kroger Replace Existing JV With New License And Service Agreement

(RTTNews) - Grocery chain operator Kroger Co. (KR) said that under new arrangements with its dunnhumbyUSA joint venture partner - dunnhumby Ltd., the two partners will replace their existing exclusive joint venture with a new long-term license and service agreement.

This includes the acquisition of certain assets from dunnhumbyUSA by Kroger. A new business called 84.51° will operate with those assets as its foundation.

Financial terms of the new arrangements were not disclosed. The new businesses will commence operations on April 27, 2015. The two companies does not anticipate headcount reductions as a result of the new arrangements.

dunnhumby Ltd will continue to operate in the U.S. as dunnhumby, expanding its client base and accelerating the growth of its business through the greater flexibility of the new arrangements with Kroger.

Under the new arrangements, Kroger will retain dunnhumby Ltd's technology and the talent to continue developing Kroger's leading customer insights and loyalty programs for the benefit of its customers. More than 500 of dunnhumbyUSA's employees will become associates of 84.51°, a wholly-owned subsidiary of Kroger.