Belgian food retailer Delhaize has signed a non-binding letter of intent to acquire a “substantial” majority of US retailer Bi-Lo’s assets for US$425m.
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The announcement today (5 October) has been made in the context of Bi-Lo’s bankruptcy proceedings in the US court of South Carolina.
The US supermarket group was forced to apply for Chapter 11 bankruptcy protection in March, after the financial market crisis prevented it from refinancing outstanding loans.
The retailer, which runs 215 stores across four southern US states, said it had made the move “to address an upcoming debt maturity”.
Rick Anicetti, executive vice president of Delhaize Group and president and CEO of Food Lion, said: “We at Food Lion have great admiration for the associates and stores at Bi-Lo. We believe our markets and service philosophy are complementary and we look forward to continuing our discussions with Bi-Lo.”
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By GlobalDataThe non-binding offer is subject to bankruptcy court and regulatory approvals.
Assets to be included in the deal are estimated to have realized over $2bn in sales in 2008, Delhaize said.
Delhaize Group said it intends to integrate the included Bi-Lo assets in the network of its wholly owned subsidiary Food Lion, which currently has around 1,300 stores in 11 US states.
