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COLUMBIA, Md. -- Private equity firms Clayton, Dubilier & Rice (CD&R) and Kohlberg Kravis Roberts & Co. (KKR) have made a preliminary bid to buy Ahold division U.S. Foodservice unit, according to a published report that cited an unnamed source.
Following an exhaustive review of its retail operations, Ahold recently placed the scandal-plagued, financially troubled unit on the market.
Reuters reported that the source told it Clayton, Dubilier & Rice (CD&R), which in 2001 sold Alliant (a business now part of U.S. Foodservice) to Ahold, is heading up the takeover bid and values the business at approximately $5 billion. The source added that the CD&R/KKK bid could result in a deal during the first quarter of 2007.
CD&R and KKR have declined to comment, but speculation that KKR was gearing up to bid for all of Ahold was shot down late last week by a source familiar with the matter.
Another source earlier informed Reuters that Cerberus Capital Management, yet another private equity firm, was also considering buying U.S. Foodservice.