:. Food Industry News

Categories: Mergers and Acquisitions

Super de Boer Sold to Jumbo for 552.5 Mln Euros

Source: Reuters
19/10/2009

Amsterdam, Oct 19 - Dutch supermarkets group Super De Boer said on Monday it had agreed to a buyout offer from Dutch rival Jumbo, valuing the company at 552.5 million euros ($822.3 million).

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Super de Boer became the hot prize in the consolidation of Dutch supermarkets this month as a bid from Jumbo was followed by an intended offer from Sperwer, while two other supermarkets joined the battle, separately backing the rival offers.

But the bid from Jumbo eventually won out.

"We are convinced that this is a very attractive transaction for all of our stakeholders, including our employees, franchisees, shareholders and, last but not least, our customers," Super de Boer's Chief Executive Jan Brouwer said in statement.

The revised offer from Jumbo comes at 4.82 euros per share; Super de Boer closed at 4.514 euros on Friday. That topped Sperwer's previous 4.50 euros/share offer. Sperwer said in a separate statement it would drop its bid.

The deal creates a supermarket chain store which will likely increase competition for market leader Ahold, which owns the Albert Heijn stores and has more than a 30 percent market share.

Jumbo had agreed to sell 80 Super De Boer stores to rival Schuitema, which operates the C1000 brand, if its bid succeeded, while Sperwer had planned to sell about 40 Super De Boer stores to Ahold if it was successful.

Super de Boer is 57 percent owned by French peer Casino.

Casino said in a separate statement the price valued the business at 13.9 times estimated EBITDA and generates a gross capital gain of some 60 million euros for Casino.

It will also allow Casino to reduce its debt by around 400 million euros.



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