BRUSSELS, Belgium – Delhaize Group (Euronext Brussels: DELB, NYSE: DEG), the Belgian international food retailer, announces that it has reached an agreement with Bi-Lo Holdings, LLC (“Bi-Lo Holdings”) on the divestiture of Sweetbay (72 stores), Harveys (72 stores), and Reid’s (11 stores).
Delhaize Group announces that it has signed an agreement with Bi-Lo Holdings to divest its Sweetbay, Harveys, and Reid´s operations for $265 million in cash. As part of the transaction, Bi-Lo Holdings will also acquire leases for 10 prior Sweetbay locations. Delhaize will retain Sweetbay’s distribution center. In 2012, the 165 stores included in the transaction generated revenues of approximately $1.8 billion.
“We would like to thank the associates of Sweetbay, Harveys, and Reid´s for their ongoing commitment and accomplishments throughout the years.” said Delhaize Group CEO Pierre-Olivier Beckers. “We believe this transaction represents a significant move towards simplifying our business and will allow for even greater focus at Delhaize America. The transaction will further increase the financial flexibility required to execute our strategic priorities.”
The transaction is expected to close in the fourth quarter of 2013 and is subject to regulatory approval as well as customary closing conditions and working capital adjustments. Lazard acted as financial advisor to Delhaize Group for this transaction.
Delhaize Group
Delhaize Group is a Belgian international food retailer present in ten countries on three continents. At the end of the first quarter of 2013, Delhaize Group’s sales network consisted of 3,411 stores. In 2012, Delhaize Group posted €22.6 billion ($29.0 billion) in revenues and €104 million ($134 million) in net profit (Group share). At the end of 2012, Delhaize Group employed approximately 158,000 people.
Source: Delhaize Group
