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Ahold Delhaize announces U.S. brand Food Lion has agreed to acquire 62 stores from Southeastern Grocers

PRESS RELEASE

 

Zaandam, the Netherlands, June 3, 2020 – Ahold Delhaize announces today that Food Lion, its second largest brand in the United States, by sales, has agreed to purchase 62 BI-LO and Harveys Supermarkets from Southeastern Grocers. The stores are located in North Carolina, South Carolina and Georgia and will be converted to Food Lion stores, as part of the brand’s continued expansion in the southeast of the U.S.

Food Lion, based in Salisbury, N.C., operates more than 1,000 stores in 10 Southeastern and Mid-Atlantic states and employs more than 77,000 associates. As part of the asset deal Food Lion expects to hire more than 4,650 associates to serve customers at the 62 acquired stores.

This asset deal with Southeastern Grocers also includes the acquisition of an additional distribution center in Mauldin, S.C. Both acquisitions are currently expected to close in the first half of 2021, subject to customary closing conditions. Financial terms of the deal were not disclosed and Group financial guidance remains unchanged.

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Delhaize and Ahold merging into Ahold Delhaize

Leading international food retailers Delhaize Group (Delhaize) and Royal Ahold N.V. (Ahold) are to merge into a company to be known as Ahold Delhaize.

Leading international food retailers Delhaize Group (Delhaize) and Royal Ahold N.V. (Ahold) are to merge into a company to be known as Ahold Delhaize.

Announcing the merger agreement on Wednesday in a press release, they said the company will have enhanced scale across regions, market-leading retail offerings to serve customers’ changing needs, and a strong financial profile from which to fund innovation and investments in future growth.

Ahold and Delhaize businesses reported aggregated net sales of €54.1 billion, adjusted EBITDA of €3.5 billion, net income from continued operations of €1.0 billion and free cash flow of €1.8 billion last year. The new Ahold Delhaize enterprise will boast “a portfolio of strong, trusted local brands and serve more than 50 million customers every week in the US and Europe.”

Mats Jansson, chairman of Delhaize Group, will become chairman of Ahold Delhaize. Jan Hommen, chairman of Royal Ahold, and Jacques de Vaucleroy, Delhaize Group director, will become vice chairmen of Ahold Delhaize. Dick Boer, CEO of Royal Ahold, will become CEO. Frans Muller, CEO of Delhaize Group, will become deputy CEO and chief integration officer.

Leveraging our combined scale, skills and values

Hommen and Jansson said the merger will combine two highly complementary businesses to create a world-leading food retailer.

Muller said it will create significant value for all stakeholders. “Ahold Delhaize aims to increase relevance in its local communities by improving the value proposition for its customers through assortment innovation and merchandising, a better shopping experience both in stores and online, investments in value, and new store growth,” he said.

Boer said the proposed merger “is an exciting opportunity to create an even stronger and more innovative retail leader for our customers, associates and shareholders worldwide. With extraordinary reach, diverse products and formats, and great people, we are bringing together two world-class organizations to deliver even more for the communities we serve. Our companies share common values, proud histories rooted in family entrepreneurship, and businesses that complement each other well. We look forward to working together to reach new levels of service and success.”

sources:
Ahold and Delhaize announce intention to merge (press release)
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