Delhaize Group and BI-LO Agree on Non-Binding Offer for Food Lion to
Acquire Certain BI-LO Assets
(Thomson Reuters ONE) - BRUSSELS, Belgium - October 5, 2009 - Delhaize Group (EuronextBrussels: DELB - NYSE: DEG), the Belgian international food retailer,announced today that it has entered into a non-binding Letter ofIntent with BI-LO, LLC to acquire a substantial majority of BI-LO'sassets, including associated inventory, for a purchase price of USD425 million in cash. This announcement was made in the context ofBI-LO's bankruptcy proceedings in the United States Bankruptcy Courtfor the District of South Carolina.BI-LO is a food retailer that currently operates 214 stores in NorthCarolina, South Carolina, Tennessee and Georgia and employsapproximately 15 500 people. The company is headquartered in Mauldin,S.C. On March 23, 2009, BI-LO and certain of its affiliates filedvoluntary petitions for relief under Chapter 11 of the United StatesBankruptcy Code in the United States Bankruptcy Court for theDistrict of South Carolina. The included BI-LO assets are estimatedto have realized over USD 2 billion in sales in 2008.Rick Anicetti, Executive Vice President of Delhaize Group andPresident and CEO of Food Lion, LLC said: "We at Food Lion, LLC havegreat admiration for the associates and stores at BI-LO. We believeour markets and service philosophy are complementary and we lookforward to continuing our discussions with BI-LO."The non-binding offer is subject to the satisfactory completion ofthe customary steps for such an acquisition including certainBankruptcy Court approvals. Delhaize Group and BI-LO intend to closethe transaction shortly after obtaining the entry of a finalnon-appealable sale order of the bankruptcy court pursuant to Section363 of the U.S. Bankruptcy Code, authorizing the transfer of thepurchased assets to Food Lion. It is the intent of Delhaize Group tointegrate the included BI-LO assets in the network of its whollyowned subsidiary Food Lion, LLC. Food Lion, LLC is a food retailerthat has more than 1 300 stores in 11 U.S. states and has more than74 000 associates.» Delhaize GroupDelhaize Group is a Belgian international food retailer present insix countries on three continents. At the end of the second quarterof 2009, Delhaize Group's sales network consisted of 2 684 stores. In2008, Delhaize Group posted EUR 19 billion (USD 28 billion) inrevenues and EUR 467 million (USD 687 million) in net profit (Groupshare). At the end of 2008, Delhaize Group employed approximately 141000 people. Delhaize Group's stock is listed on Euronext Brussels(DELB) and the New York Stock Exchange (DEG).This press release is available in English, French and Dutch. You canalso find it on the website http://www.delhaizegroup.com. Questionscan be sent to investor(at)delhaizegroup.com.» ContactsGeert Verellen: + 32 2 412 83 62Barbera Hoppenbrouwers (media): + 32 2 412 86 69Christy Phillips-Brown (U.S. media): +1 704 633 8250 (ext.2221)Amy Shue (U.S. investors): +1 704 633 8250 (ext.2529) cautionary note regarding forward looking statementsStatements that are included or incorporated by reference in thispress release and other written and oral statements made from time totime by Delhaize Group and its representatives, other than statementsof historical fact, which address activities, events and developmentsthat Delhaize Group expects or anticipates will or may occur in thefuture, including, without limitation, statements about strategicoptions, future strategies and the anticipated benefits of thesestrategies, are "forward-looking statements" within the meaning ofthe U.S. federal securities laws that are subject to risks anduncertainties. These forward-looking statements generally can beidentified as statements that include phrases such as "guidance","outlook", "projected", "believe", "target", "predict", "estimate","forecast", "strategy", "may", "goal", "expect", "anticipate","intend", "plan", "foresee", "likely", "will", "should" or othersimilar words or phrases. Although such statements are based oncurrent information, actual outcomes and results may differmaterially from those projected depending upon a variety of factors,including, but not limited to, changes in the general economy or themarkets of Delhaize Group, in consumer spending, in inflation orcurrency exchange rates or in legislation or regulation; competitivefactors; adverse determination with respect to claims; inability totimely develop, remodel, integrate or convert stores; and supply orquality control problems with vendors. Additional risks anduncertainties that could cause actual results to differ materiallyfrom those stated or implied by such forward-looking statements aredescribed in Delhaize Group's most recent Annual Report on Form 20-Fand other filings made by Delhaize Group with the U.S. Securities andExchange Commission, which risk factors are incorporated herein byreference. Delhaize Group disclaims any obligation to updatedevelopments of these risk factors or to announce publicly anyrevision to any of the forward-looking statements contained in thisrelease, or to make corrections to reflect future events ordevelopments.http://hugin.info/133961/R/1345610/323048.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 05.10.2009 - 08:02 Uhr
Sprache: Deutsch
News-ID 6550
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"Delhaize Group and BI-LO Agree on Non-Binding Offer for Food Lion to
Acquire Certain BI-LO Assets"
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