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Retail conglomerate Delhaize Group has completed, through its subsidiary Alfa-Beta Vassilopoulos, the purchase of 11 stores and a distribution center operated under the banner Koryfi. The 7.0 billion-euro (US $10.5 billion) acquisition will bolster the position of Alfa-Beta in northeastern Greece, where the second-largest food retailer in the country currently has a limited presence.
“The acquisition of Koryfi supports Delhaize Group’s objective of accelerating profitable revenue growth and fits [into] the company’s strategy to reinforce its presence in existing or adjacent markets through fill-in acquisitions with strong synergies,” noted Alfa-Beta CEO Konstantinos Macheras, who referred to the deal as a “perfect fill-in acquisition of 11 well-located stores and a distribution center.” The transaction includes the real estate ownership of two stores and the DC.
The 2008 revenues of the 11 acquired locations totaled 30 million euros (US $45 million). Alfa-Beta plans to convert the stores to its banners before the close of 2010.
At the end of the third quarter of 2009, Alfa-Beta operated 204 stores under the banners Alfa-Beta, AB City Market, ENA cash & carry, AB Foodmarket and AB Shop n’ Go. In 2008, the subsidiary’s 2008 revenues came to 1.3 billion euros (US $2 billion), and it employed close to 9,000 associates.
Based in Brussels, Delhaize operates in six countries on three continents. At the end of the third quarter of 2009, the company’s sales network consisted of 2,697 stores. In 2008, Delhaize posted 19 billion euros (US $28 billion) in revenues and 467 million euros (US $687 million) in net profit, as well as employing about 141,000 people.