Sligro Food Group and Sperwer Holding acquire Edah
A consortium, formed by Sligro Food Group and Sperwer Holding has agreed to acquire the 223 owned stores of the Edah and Edah Lekker & Laag banner from Laurus.
The estimated total consideration amounts to € 221 mln. The final consideration depends on the value of specific assets and will be determined on closing.
All employees of the stores, the Someren distribution centre and the related part of the overheads (some 74 FTE’s) will be employed by the consortium.
The consortium has agreed to assume the lease obligations in respect of the distribution centre at Someren until the end of 2007.
The stores have a total store sales surface of 234,000 sqm and realised a 2005 consumer turnover of € 880 mln. The 50 Edah franchisees are not included in the transaction. However the consortium will start discussions hereto with the franchisees.
The transaction is expected to close in the third quarter of 2006.
Sligro Food Group and Sperwer Holding will equally divide and transfer the applicable stores to their own store formats, EM-TE and Golff, respectively PLUS. The remaining stores will be sold to third parties. It is foreseen that this transformation process will be finalised by the end of 2007.
Sligro Food Group has agreed the financing of its part of the acquisition with its bankers and is still contemplating the final financing structure.
It is expected that the acquisition will positively contribute to the profit and earnings per share as from 2008, when the integration of the stores will have been finalised.
In accordance with the SER merger regulations, the transaction has been announced and Sligro Food Group will ask its works council for advise. The consortium will obtain clearance from the Dutch competition authority (Nma). Furthermore Sligro Food Group will ask its shareholders for approval in an extra ordinary shareholders meeting.
Veghel, 29th of May 2006
On behalf of the Sligro Food Group Executive Board.
A.J.L. Slippens
H.L. van Rozendaal
www.sligrofoodgroup.com
tel.: +31 413 343500
