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Belgium's Delhaize Acquires Southeast European Retail Group for EUR932.5Mln
Belgian international food retailer Delhaize Group said Thursday it had reached an agreement to acquire 100 percent of the Delta Maxi retail group, which controls 450 stores in five countries across southeastern Europe, for EUR932.5 million.
Delhaize said in a statement that the deal will transform it into a leading retailer in southeastern Europe. The retailer said it expects the acquisition, including transaction costs, to be immediately earnings accretive as of 2011.
The Belgian group already has existing food retail operations in Greece and Romania.
"We foresee significant revenue growth and synergies potential from integrating these new markets in our exisiting European business," said Pierre-Olivier Beckers, Delhaize Group's chief executive and president.
Under the acquisition's terms, Delhaize will acquire 100 percent of Delta Maxi for EUR932.5 million, including net debt of EUR300 million.
Delta Maxi, which was established in 2000 and is based in Belgrade, Serbia, runs over 450 retail stores in Serbia, Bulgaria, Bosnia and Herzegovina, Montenegro and Albania.
Delhaize has a sales network of 2,800 stores and posted EUR514 million in net profit in 2009.
Author: Justin Cole, analyst.
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