Delhaize Group press release - Delhaize Group and Ahold reach agreements with buyers to divest 86 U.S. stores, subject to FTC merger clearance
(Thomson Reuters ONE) -
* All purchase agreements are subject to FTC approval and clearance by the FTC
of the Ahold and Delhaize Group merger
* All divested stores to be sold to well-established supermarket retailers
* Divestitures represent 4.1% of the Ahold and Delhaize Group companies' total
combined U.S. store count and 3.2% of the Ahold and Delhaize Group
companies' combined U.S. 2015 net sales
* The companies continue to expect to complete the merger before the end of
July
BRUSSELS, Belgium, July 14, 2016 - Delhaize Group and Ahold today announced that
their United States subsidiaries have reached agreements with buyers to divest a
total of 86 stores in a limited number of locations in which the companies' U.S.
subsidiaries both operate. These divestments are being made in connection with
the United States Federal Trade Commission's (FTC) pending review of the
proposed merger between the two companies. The divested stores are being sold to
well-established supermarket operators.
All of the purchase agreements are subject to FTC approval. The agreements are
also subject to FTC clearance and formal completion of the Delhaize Group and
Ahold merger, which the companies continue to expect before the end of July.
These store locations represent 4.1% of the Ahold and Delhaize Group companies'
total combined U.S. store count and 3.2% of combined U.S. 2015 net sales.
"Selling stores is a difficult part of any merger process, given the impact on
our associates, customers and communities in which we operate," said Frans
Muller, President and Chief Executive Officer, Delhaize Group. "We believe we
have made every effort to identify strong buyers for these locations, and we
want to thank our loyal associates and customers who have shopped our stores and
supported us for so many years. Upon the completion of the merger, we will
continue to maintain our local Food Lion and Hannaford brands; however, our new
company scale will enable us to accelerate our local market strategies to better
serve our customers with nearly 2,000 stores along the East Coast in the United
States."
The buyers of the 86 stores being divested are:
* New Albertson's, Inc.(part of Albertsons Companies based in Idaho),
purchasing 1 Giant Food store in Salisbury, Maryland;
* Big Y (based in Massachusetts), purchasing 8 Hannaford stores in eastern
Massachusetts;
* Publix (based in Florida), purchasing 10 MARTIN'S stores in Richmond,
Virginia;
* Saubel's Markets (based in Pennsylvania), purchasing 1 Food Lion store in
York, Pennsylvania
* Supervalu (based in Minnesota), purchasing 22 Food Lion stores in Maryland,
Pennsylvania, Virginia and West Virginia;
* Tops Markets (based in New York), purchasing 1 Stop & Shop store in
Massachusetts as well as 3 Stop & Shop stores and 2 Hannaford stores in
New York; and
* Weis Markets (based in Pennsylvania), purchasing 38 Food Lion stores in
Delaware, Maryland and Virginia.
The divested stores are expected to be converted by the buyers to their new
banners and re-opened as supermarkets after any remodeling planned by the
buyers.
A full list of the locations being sold by both companies as part of this
process is attached as an annex to this press release.
On June 24, 2015, Delhaize Group and Ahold announced their intention to merge.
The shareholders' meetings of both companies approved the merger in March 2016.
The Belgian Competition Authority (BCA) granted its conditional approval for the
merger in March 2016. FTC clearance is the remaining regulatory approval
requirement for the Ahold and Delhaize Group merger.
Please visit www.delhaizegroup.com, www.ahold.com, or www.adcombined.com for
more information.
» Delhaize Group
Delhaize Group is a Belgian international food retailer present in seven
countries on three continents. On March 31, 2016, Delhaize Group's sales network
consisted of 3,524 stores. In 2015, Delhaize Group posted ?24.4 billion ($27.1
billion) in revenues and ?366 million ($407 million) in net profit (Group
share). At the end of 2015, Delhaize Group employed approximately 154,000
people. Delhaize Group's stock is listed on NYSE Euronext Brussels (DELB) and
the New York Stock Exchange (DEG).
This press release is available in English, French and Dutch. You can also find
it on the website http://www.delhaizegroup.com. Questions can be sent to
investor(at)delhaizegroup.com.
» Contacts
Investor Relations: + 32 2 412 2151
Media Relations: + 32 2 412 8669
U.S. Media: Christy Phillips-Brown, +1-704-310-2221, Cphillips-
brown(at)foodlion.com
Press release in pdf format:
http://hugin.info/133961/R/2028465/754136.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Delhaize Group via GlobeNewswire
[HUG#2028465]
Unternehmensinformation / Kurzprofil:
Datum: 14.07.2016 - 03:00 Uhr
Sprache: Deutsch
News-ID 483256
Anzahl Zeichen: 5942
contact information:
Town:
Brussels
Kategorie:
Business News
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