Delhaize Group's Mega Image Acquires 14 Supermarkets in Romania

31/03/08 The Belgian international food retailer, announced that it has entered into an agreement to acquire La Fourmi, which operates 14 supermarkets in Bucharest, through its fully-owned subsidiary Mega Image. This highly complementary acquisition allows Mega Image to strengthen its leading position in Bucharest, the capital of Romania.

John Kyritsis, General Manager of Mega Image, commented: “This transaction fits perfectly into Mega Image’s strategy of growing via well-located stores in urban areas. The 14 La Fourmi stores will strengthen our store network. We also expect sizable sales opportunities and buying synergies from this acquisition.”
 
In 2005, Global Finance, a Greek private equity fund, took an 80% stake in La Fourmi. This stake was then further raised to the level of approximately 90%. The remaining 10% belonged to private investors. The purchase price for 100% ownership of La Fourmi is EUR 18.6 million, subject to contractual adjustments. The acquisition includes real estate ownership of four stores.
 
La Fourmi was the first supermarket chain to open in Bucharest in 1992. For 2007, it is estimated that the revenues of the 14 acquired stores amount to approximately EUR 30 million. The 14 stores, which have a size of 350 to 500 square meters, will be converted to Mega Image supermarkets. Thanks to the proximity of the acquired stores within Bucharest, Mega Image’s existing distribution center will be used to serve those stores.
 
Renaud Cogels, Chief Executive Officer of Delhaize Group Southeastern Europe said: “With this acquisition, as well as with the acquisition of Plus Hellas in Greece in January, Delhaize Group shows its commitment to reinforce its presence in the Balkans. The acquisition of these 14 stores gives us the opportunity to strengthen our position in Romania and in particular in Bucharest, a city in rapid expansion.”
 
The acquisition of La Fourmi is subject to customary conditions, including the approval by the Romanian antitrust authorities. The transaction is expected to close in the second quarter of 2008.
 
At the end of 2007, Mega Image’s network consisted of 22 stores, 19 in Bucharest, 2 in Constanta and 1 in Ploiesti. The number of employees at the end of 2007 was approximately 1,200 people. Delhaize Group acquired a 51% stake in Mega Image in 2000. In 2004, Mega Image became fully-owned by Delhaize Group.