Ahold to sell Deli XL to Bidvest Group
The divestment of Deli XL is part of Ahold's strategic plan to restructure its portfolio to focus on retail activities in The Netherlands and to strengthen its financial position by reducing debt.
15/07/05 Ahold has announced that agreement has been reached with Bidvest Holding B.V. on the divestment of its Dutch delivered foodservice wholesale subsidiary Deli XL. The buyer is a wholly-owned subsidiary of The Bidvest Group Limited, a South Africa based, diversified company with a strong presence in the foodservice industry in the United Kingdom, Australia, New Zealand and South Africa.
The value of the transaction amounts to approximately EUR 140 million, consisting of a cash consideration, debt repaid to Ahold as well as assumed debt. Consultative procedures with unions and the representative bodies have been completed. The transaction is subject to the fulfillment of customary closing conditions including competition authority clearance. The transaction is expected to close in the third quarter of this year.
Deli XL is the leading delivered foodservice wholesaler in the Benelux, with consolidated 2004 net sales of Euro 819 million. Deli XL is especially strong in the institutional and catering segments of the foodservice market. Currently, Deli XL supplies over 60,000 products to around 34,000 customers including hospitals, company canteens, schools, hotels and restaurants. Deli XL employs approximately 2,100 staff in The Netherlands and Belgium.
Bidvest, with consolidated 2004 sales of EUR 6.7 billion, is an international services, trading and distribution company listed on the JSE Securities Exchange South Africa and operating on three continents. Bidvest employs 81,000 people worldwide.
The divestment of Deli XL is part of Ahold's strategic plan to restructure its portfolio to focus on retail activities in The Netherlands and to strengthen its financial position by reducing debt.
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