Combined companies form 5th largest supermarket retailer in the nation
Salisbury, NC Delhaize America, Inc. (NYSE: DZA, DZB) and Hannaford Bros. Co. (NYSE: HRD) have received approval from the Federal Trade Commission to proceed with the pending acquisition of Hannaford by Delhaize America.
The companies expect to close the transaction effective Saturday, July 29, 2000. Hannaford shareholders wishing to make an election between receiving cash or DZA shares must return their election forms to First Union National Bank, the exchange agent for the transaction, by 5:00 p.m. on July 28, 2000, the last business day before the effective date of the transaction, in accordance with instructions previously distributed to shareholders.
"We are moving forward quickly to execute our strategic plan for the combined companies to gain greater efficiencies and share best practices," said Bill McCanless, Delhaize America Chief Executive Officer.
The acquisition will result in a combined entity that generates sales in excess of $14 billion and garner synergies of approximately $40 million in the first year after the closing of the transaction.
"By this transaction, Hannaford is able to preserve its long-standing presence as a premier supermarket and combination store operator in the Northeast, while becoming a partner in a combined company that will be a major player in the US market, " said Hugh G. Farrington, Hannaford's President and CEO. Farrington will also serve as co-chairman of Delhaize America following the acquisition.
Following the acquisition, Hannaford becomes the third banner owned by Delhaize America, the parent company of Salisbury, N.C.-based Food Lion and Tampa, Fla.-based Kash n' Karry. With more than 1,400 stores on the Eastern seaboard, the combined companies will be the fifth-largest grocery operator in the nation with stores from Maine to Florida.
This document contains forward-looking statements that involve uncertainties. Factors that could cause results to differ materially from those in the forward-looking statements are detailed from time to time in reports filed by the Company with the SEC, including Forms 8-K, 10-Q and 10-K.
Contacts
For Delhaize America
Tawn Earnest (Media Relations)
704-633-8250, ext. 2185
David Hogan (Investor Relations)
704-633-8250, ext 2529
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For Hannaford Bros. Co.
Caren Epstein (Media Relations)
207-885-3132
Chuck Crockett (Investor Relations)
207-885-2349
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Contact: Tawn Earnest (704) 633-8250, Ext. 2185