Delhaize sells three American chains, gets less than expected

Delhaize sells three American chains, gets less than expected

Delhaize has finalized the sale of its three smaller American chains (Sweetbay, Harveys, Reid's) and will get 246 million dollars (181 million euro) from Bi-Lo, slightly lower than agreed to.

Sold chains worth 1.3 billion euro

The deal had been announced in May 2013, one of the last major decisions from former CEO Pierre-Olivier Beckers and American CEO Roland Smith.

 

Judging by American standards, the three chains were too small, even though they represented a joint turnover of 1.8 billion dollars (1.3 billion euro), through 72 Sweetbay stores, 72 Harveys stores and 11 Reid's stores.

 

Purchase price lower than expected

Delhaize aims to focus its American efforts on Food Lion, Hannaford and its discount chain Bottom Dollar. According to the group, with a 2013 total turnover of 20.9 billion euro, Bottom Dollar has cut its losses last year.

 

The total sum for the three American chains is slightly lower than originally anticipated as Delhaize spoke of a 265 million dollar (195 million euro) price, but it finally received 246 million dollars.

 

Logistics center sold as well

In a separate sale, Delhaize sold off its Plant City (Florida) logistics center to C&S Wholesale Grocers for 28 million dollars (21 million euro). Only last year, it had stated it would hang onto Sweetbay's logistics center.

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