Brussels, October 8, 2009 - Delhaize Group, the Belgian international food retailer, announced today that it has entered into a share purchase agreement to acquire the Greek retailer Koryfi through its subsidiary Alfa-Beta Vassilopoulos for an amount of EUR 7.0 million (plus EUR 1.8 million financial debt).
This highly complementary acquisition of 11 stores will reinforce the position of Alfa-Beta in Thrace (Northeastern Greece) where it currently has a limited presence.
Konstantinos Macheras, Chief Executive Officer of Alfa-Beta, commented: "The acquisition of Koryfi supports Delhaize Group's objective of accelerating profitable revenue growth and fits in the company's strategy to reinforce its presence in existing or adjacent markets through fill-in acquisitions with strong synergies. The Koryfi stores will give Alfa-Beta an important presence in Thrace, an area in Northern Greece where we are currently almost absent. We look forward to welcoming the employees of Koryfi and are committed to continue the excellent service to Koryfi customers."
Koryfi is a family-owned supermarket chain that was founded in 1998. It is currently operating 11 stores with an average selling area of approximately 800 m², including 8 located in Alexandroupolis, and a small distribution center. The transaction includes the real estate ownership of 2 stores and the distribution center. In 2008, Koryfi realized EUR 30 million in sales and employed approximately 325 people. The objective is to convert all Koryfi stores before the end of 2010 to Alfa-Beta banners.
The acquisition of Koryfi is subject to customary conditions, including the approval by the Greek antitrust authorities. The transaction is expected to close in the fourth quarter of 2009.
Alfa-Beta is the second largest food retailer in Greece. At the end of August 2009, Alfa-Beta's network consisted of 204 stores under the banners Alfa-Beta, AB City Market, ENA cash & carry, AB Foodmarket and AB Shop n' Go. In 2008, Alfa-Beta realized EUR 1.3 billion revenues and it employed 8 821 people.