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Food Lion to check out with supermarket assets
Posted on Thursday, 04 June 2020 11:51
Food Lion, a subsidiary of Ahold Delhaize, has agreed to purchase 62 stores from US-based supermarket chains BI-LO and Harveys Supermarkets
The deal also includes the acquisition of an additional distribution centre in North Carolina.
Both acquisitions, which are in line with the buyer’s plans to expand across the Southeast US, are due to complete in the first half of 2021, pending the usual regulatory approvals and customary conditions.
No financial details were closed.
Food Lion expects to hire more than 4,500 workers for the new stores, which will continue to operate as part of BI-LO and Harveys until the transaction is completed.
The addition of the outlets will allow the acquiror to provide more fresh food and products for shoppers.
Formed in 1924, Harveys operates a chain of grocery stores which serve customers across Georgia, Florida and South Carolina.
Its products include flowers, gift cards and digital coupon applications.
Headquartered in Florida, BI-LO operates 107 supermarkets in South Georgia, North and South Carolina, as of April 2020.
The group offers a range of deli and bakery products, as well as fresh groceries and online shopping services.
Following the acquisition, Food Lion plans to pair the new stores with food banks as part of its aim to provide more than 1.00 billion meals through the company’s hunger relief programme.
Established in 1957, the purchaser operates over 1,000 grocery outlets in the Southeast and Mid-Atlantic states of the US.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 133 deals targeting supermarkets and other grocery store operators announced globally in 2020 to date.
By far and away the largest of these involved a group of GP Group entities, including CP Retail Development and Charoen Pokphand Holding, agreeing to buy Tesco Stores (Thailand) for USD 9.50 million.
© Zephus Ltd