Delhaize Group announced Thursday in Brussels that it has signed an agreement to sell Bottom Dollar Food's 66 store locations in the greater Philadelphia and greater Pittsburgh markets to Aldi for approximately $15 million.
The transaction, which includes Aldi's assumption of associated lease liabilities, is expected to result in an asset impairment and other charges for Delhaize Group of approximately $180 million.
All stores are anticipated to remain open as Bottom Dollar Food stores until year-end. After that time, Bottom Dollar Food will close the stores and retire the banner's operations. The transaction is subject to customary closing conditions and is expected to be completed by the end of the first quarter 2015.
“I would like to thank our Bottom Dollar Food associates for their hard work and dedication to their customers,” said Frans Muller, president and CEO of Delhaize Group. “The divestiture of Bottom Dollar Food further simplifies our business, increases debt capacity and creates shareholder value. Today's announcement is consistent with our strategy, announced in March, of investing in and focusing on our core markets.”
|Suggested Categories||More from Supermarketnews|