Delhaize Group Completes Delta Maxi Acquisition and Becomes a Leading Retailer in Southeastern Europe
BRUSSELS, Belgium - Delhaize Group (Euronext Brussels: DELB - NYSE: DEG), the Belgian international food retailer, announced today that it has received the unconditional approvals of all relevant merger control authorities and has completed the earlier announced acquisition of the Serbian retailer Delta Maxi. Combined with its existing operations in Greece and Romania, the transaction makes Delhaize Group into a leading retailer in Southeastern Europe.
Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group, said: “This transaction fits perfectly in our New Game Plan, our strategic plan focused on accelerating profitable revenue growth. The addition of Delta Maxi combined with our existing businesses in Romania and Greece makes Delhaize Group into a leading player in the region. We are looking forward to growing our business in this promising part of Europe.”
“We are excited to welcome the 15 000 Delta Maxi associates to Delhaize Group and we are looking forward to continuing to serve Delta Maxi’s customers with the support of Delhaize Group’s international experience,” said Kostas Macheras, Executive Vice President Delhaize Group and Chief Executive Officer of Delhaize Group Southeastern Europe. “We are happy that we succeeded in completing the transaction within the planned timeframe. As from today, we can effectively integrate Delta Maxi into our Delhaize Group organization, something that we have been preparing already for a number of months. We are looking forward to continuing to build on the local strengths of the Delta Maxi stores and to strengthen the relationships with local suppliers.”
Delhaize Group has acquired Delta Maxi for EUR 932.5 million including net debt and other customary adjustments of EUR 318 million. In Serbia, Delta Maxi operates approximately 350 stores and is the largest food retailer. Delta Maxi began operations in 2000 and operates approximately 450 stores in Serbia, Bulgaria, Bosnia and Herzegovina, Montenegro and Albania. At the end of 2011, Delta Maxi’s five-country network is expected to count approximately 500 stores. The results of Delta Maxi will be consolidated in Delhaize Group’s results from August 1, 2011 and will be reported as part of the Southeastern Europe and Asia operating segment. The transaction includes a significant part of the real estate ownership of the stores in Serbia as well as seven of the distribution centers.
Immediately following the closing of the acquisition, Delhaize Group will start to integrate Delta Maxi fully in line with the strategic choices set forth in the New Game Plan. To that end, Delhaize Group will, over the next several quarters, focus on the development of clear strategic plans for pricing, assortment, branding as well as format management to ensure the continued successful growth in the region and to ensure the generation of more than EUR 20 million in net annual EBITDA synergies particularly from improved procurement, better inventory management and optimized finance, IT and supply chain systems and processes from the end of 2013.
» Delhaize Group
Delhaize Group is a Belgian international food retailer present in eleven countries on three continents. At the end of the first quarter of 2011, Delhaize Group’s sales network consisted of 2 816 stores. In 2010, Delhaize Group posted EUR 20.8 billion (USD 27.6 billion) in revenues and EUR 574 million (USD 762 million) in net profit (Group share). At the end of 2010, Delhaize Group employed approximately 138 600 people. Delhaize Group’s stock is listed on NYSE Euronext Brussels (DELB) and the New York Stock Exchange (DEG).
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