This excerpt taken from the DEG 6-K filed Apr 25, 2005.
Delhaize Group Acquires Cash Fresh in Belgium
Delhaize Group has entered into a binding agreement to acquire Cash Fresh, a profitable chain of 43 supermarkets mainly in northeastern Belgium. In fiscal year 2004, Cash Fresh posted EUR 209 million in sales. The acquisition will reinforce Delhaizes position as the second largest Belgian food retailer by adding a market share of approximately 1.3% (source: AC Nielsen, ACV report).
Arthur Goethals, Executive Vice President and Chief Executive Officer of Delhaize Belgium, commented: We are particularly pleased with the acquisition of Cash Fresh because of its strong geographical and strategic fit with our existing Belgian operations. Cash Freshs strategic positioning is very adaptable to ours, with a strong focus on quality, fresh products and neighborhood proximity.
Cash Fresh is being acquired for a cash amount of EUR 113 million, subject to contractual adjustments, with an assumption of debt to be determined at closing. Estimated enterprise value is between 5.5 and 6 times its operating cash flow (EBITDA). An additional EUR 51 million will be paid to acquire real estate assets. The acquisition is subject to approval by the Belgian antitrust authorities. Because of the high profitability of Cash Fresh, the transaction is expected to be earnings accretive from 2005. The stores will be gradually converted to Delhaize banners.