The Delhaize 'Le Lion' Group (Belgium) and the Comptoirs Modernes Group (France) have signed a partnership agreement with the objective of ensuring the dynamic development of the P.G. Group, which runs a chain of supermarkets in the Nord - Pas-de-Calais (France).
The P.G. Group, a subsidiary of the Delhaize 'Le Lion' Group, runs 37 supermarkets under the name P.G. and 10 affiliated supermarkets under the name 'P.G. Partenaires'. In 1996, the P.G. Group achieved a turnover of FRF 2.1 billion (BEF 12.7 billion), an operating cash-flow of FRF 94.4 million (BEF 571.3 million) and a net profit of FRF 33.7 million (BEF 203.9 million).
The agreement states that :
- Delhaize 'Le Lion' and Comptoirs Modernes will control the P.G. Group with a 50/50 stake.
- the supermarkets will take the name Stoc in 1998, and the management will continue to be assured by the teams in place under the supervision of Comptoirs Modernes.
- Delhaize 'Le Lion' will, as in the past, provide its full support and experience to the company.
The partners are both driven by the desire to ensure the dynamic development of the chain in the north of France, an integral part of a 'Euroregion' currently undergoing great development.
Mr. Gui de Vaucleroy, Chief Executive Officer of the Delhaize 'Le Lion' Group, has stated the following concerning the agreement : 'Delhaize 'Le Lion' is pleased with this agreement with the Comptoirs Modernes Group which, as we, has also concentrated its development on the operating of supermarkets. Following our agreement, the Comptoirs Modernes Group will bring public recognition and success to the supermarkets under the name Stoc, thus contributing to the active development of the P.G. Group'.
Mr. Jean-Claude Plassart, Chairman and Chief Executive Officer of the Comptoirs Modernes Group, had the following comment to make on the agreement : 'Thanks to this agreement with Delhaize 'Le Lion', we are very pleased to be able to increase the presence of the Group in the north of France with the P.G. Group, which is a very good company. This association will enable us to group together 500 supermarkets under the Stoc name in France, which will further increase our communication and purchasing power'.
After the execution of this agreement, the Comptoirs Modernes Group will run 500 supermarkets in France and 80 in Spain. It has a 50 % share in 16 Carrefour hypermarkets in the west of France. It achieved a turnover of FRF 30 billion before tax in 1996, with a net result of FRF 574 millions before amortization of goodwill. Teams are present in Poland and South America to open new markets in these countries.
By the end of the first semester of 1997, the Belgian distribution Group Delhaize 'Le Lion' was running more than 1,800 sales outlets in 5 countries : Belgium, France, Greece, the Czech Republic and the U.S.A., where its most important subsidiary, 'Food Lion', was running 1,200 supermarkets. By the end of June this year, the Delhaize 'Le Lion' Group took its first steps towards development in Asia by signing joint venture agreements in Thailand and in Indonesia.
In 1996, the Delhaize 'Le Lion' Group achieved a turnover of BEF 412.3 billion, a cash-flow of BEF 24.3 billion and a consolidated net profit (group's share) of BEF 4.4 billion.
December 9, 1997