Leading Belgian international food retailer,
Etablissements Delhaize Fr
), better known as Delhaize Group, recently entered into a
definitive agreement to divest all of its U.S.-based Sweetbay,
Harveys and Reid's supermarket stores to another national
supermarket chain, Bi-Lo Holdings, for $265 million in cash.
As per the agreement, the U.S.-based Bi-Lo Holdings will buy
Delhaize Group's 72 Sweetbay stores, 72 Harveys stores and 11
Reid's stores along with the leases for 10 prior Sweetbay
locations. In total, the national grocery chain will take control
of over 165 stores (which generated around $1.8 billion in
revenues in 2012) and approximately 10,000 employees from
Delhaize Group. Hannaford and Sweetbay stores are located
respectively throughout New England and Florida. Harveys stores
are located primarily in Georgia and Florida.
The transaction, subject to some regulatory approvals, is
expected to close in the fourth quarter of 2013. The divesture is
expected to simplify the company's U.S. operations and enable it
to better focus on its core businesses in the region.
Bi-Lo Holdings is the parent company of the BI-LO and
Winn-Dixie grocery store chains. It operates 686 grocery stores
and 482 in-store pharmacies throughout eight southeastern states
of the U.S.
Delhaize Group operates through food supermarkets. At the end
of 2012, Delhaize Group operated companies in 10 countries on
three continents: America, Europe and Asia. These companies
have been grouped into three segments for the purposes of
reporting: the United States, referred to as Delhaize America,
Delhaize Belgium and Southeastern Europe & Asia. Delhaize
Group operates a total network of 3,451 stores. Its American
Depositary Receipts (ADRs), each representing one ordinary share,
are listed on the New York Stock Exchange under the symbol
DEG carries a Zacks Rank #2 (Buy). Other companies in the
retail/supermarket industry that are doing well are
Harris Teeter Supermarkets, Inc.
The Kroger Co.
Marks & Spencer Group plc
), all carrying a Zacks Rank #2 (Buy).
DELHAIZE-LE (DEG): Free Stock Analysis Report
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