BRUSSELS, Belgium, September 1, 2008 - Delhaize Group (Euronext Brussels: DELB - NYSE: DEG), the Belgian international food retailer, announced today that it has completed through its fully-owned subsidiary Mega Image the earlier announced acquisition of La Fourmi, which operates 14 stores in Bucharest, the capital of Romania.
“Thanks to this perfect fill-in acquisition of 14 well-located stores in urban areas, Mega Image strengthens its number one position in the city of Bucharest. By the end of the year, we expect Mega Image’s network to reach 40 stores. This acquisition will also allow us to realize important buying synergies,” commented Xavier Piesvaux, General Manager of Mega Image. “We look forward to serving our new customers of La Fourmi and welcome its employees in the Mega Image family.”
Mega Image has acquired La Fourmi for an amount of EUR 18.6 million, subject to contractual adjustments. This acquisition includes real estate ownership of four stores. For 2007, the revenues of the 14 acquired stores amounted to approximately EUR 35 million. Delhaize Group will convert the La Fourmi stores, which have a selling area of 350 to 500 square meters, to Mega Image Supermarkets within the next six months. The results of La Fourmi will be consolidated in Delhaize Group’s results from September 1, 2008.
Founded in 1995, Mega Image is one of the largest supermarket chains in Romania, with 38 supermarkets (including the 14 newly acquired stores) in Bucharest, Constanta and Ploiesti. The number of employees at the end of 2007 was 1,200 people. Delhaize Group acquired Mega Image in 2000.
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Statements that are included or incorporated by reference in this press release and other written and oral statements made from time to time by Delhaize Group and its representatives, other than statements of historical fact, which address activities, events and developments that Delhaize Group expects or anticipates will or may occur in the future, including, without limitation, statements about strategic options, future strategies and the anticipated benefits of these strategies, are “forward-looking statements” within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as statements that include phrases such as “guidance”, “outlook”, “projected”, “believe”, “target”, “predict”, “estimate”, “forecast”, “strategy”, “may”, “goal”, “expect”, “anticipate”, “intend”, “plan”, “foresee”, “likely”, “will”, “should” or other similar words or phrases. Although such statements are based on current information, actual outcomes and results may differ materially from those projected depending upon a variety of factors, including, but not limited to, changes in the general economy or the markets of Delhaize Group, in consumer spending, in inflation or currency exchange rates or in legislation or regulation; competitive factors; adverse determination with respect to claims; inability to timely develop, remodel, integrate or convert stores; and supply or quality control problems with vendors. Additional risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements are described in Delhaize Group’s Annual Report on Form 20-F for the year ended December 31, 2007 and other periodic filings made by Delhaize Group with the U.S. Securities and Exchange Commission, which risk factors are incorporated herein by reference. Delhaize Group disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.