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Ahold and Delhaize announce intention to merge

Ahold and Delhaize announce intention to merge

  • Belgium
  • Ahold and Delhaize announce this morning their intention to combine their businesses through a merger of equals
  • Delhaize Group
  • http://www.delhaizegroup.com
  • media@delhaizegroup.com
  • http://www.delhaizegroup.com/en/PublicationsCenter/OtherPressReleases/OtherPressReleasesView/tabid/301/Article/1670/ahold-and-delhaize-announce-intention-to-merge.aspx
  • The merger will create a complementary base of more than 6,500 stores with 375,000 associates, characterized by trusted brands with strong local identities
  • The combination, Ahold Delhaize, will be able to serve over 50 million customers per week in the United States and in Europe
  • Ahold Delhaize will accelerate innovation, bringing together both companies’ expertise to deliver increased value and choice for customers across its supermarket formats and online platforms
  • The combination will bring together banners offering associates even better places to work, built on similar values and heritage
  • Mats Jansson, Chairman of Delhaize Group, will become Chairman of Ahold Delhaize. Jan Hommen, Chairman of Royal Ahold, and Jacques de Vaucleroy, Delhaize Group Director, will become Vice Chairmen of Ahold Delhaize
  • Dick Boer, Chief Executive Officer of Royal Ahold, will become Chief Executive Officer. Frans Muller, Chief Executive Officer of Delhaize Group, will become Deputy Chief Executive Officer and Chief Integration Officer
  • The transaction will create significant value, with anticipated run-rate synergies of €500 million per year to be fully realized in the third year after completion
  • Both companies are highly cash generative which will allow Ahold Delhaize to invest in future growth and deliver attractive returns to shareholders
  • Ahold and Delhaize businesses reported aggregated net sales of €54.1 billion, adjusted EBITDA of €3.5 billion, net income from continued operations of €1.0 billion and free cash flow of €1.8 billion in 2014
  • Ahold will terminate its ongoing share buyback program; €1 billion will be returned to Ahold shareholders via a capital return and a reverse stock split prior to completion of the transaction
  • At completion, Delhaize shareholders will receive 4.75 Ahold ordinary shares for each Delhaize ordinary share. Ahold shareholders will own c. 61% of the combined company’s equity and Delhaize shareholders will own c. 39% of the combined company’s equity
  • The transaction is expected to be completed mid-2016, following regulatory clearances, associated consultation procedures and shareholder approval
  • The Executive Committee and Board of Directors of Delhaize as well as Management and Supervisory Boards of Ahold unanimously support and recommend the transaction

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