Ahold Sells Off U.S. Foodservice, Polish Retail Operation
AMSTERDAM -- Ahold here said Tuesday that it has successfully completed the sale of its U.S. Foodservice division to a consortium of private equity firms Clayton, Dubilier & Rice Fund VII, L.P. and Kohlberg Kravis Roberts & Co, L.P. for $7.1 million.
The sale of the financially troubled division was announced in May. Closing of the transaction was subject to the fulfillment of customary conditions, among them antitrust clearance and approval by Ahold's shareholders, which was obtained at an Extraordinary General Meeting held last month.
"The sale of U.S. Foodservice is a significant step in implementing the company's strategy announced last November," noted Ahold acting president and c.e.o. John Rishton in a statement. Following an exhaustive review of its business assets late last year, Ahold decided to sell Columbia, Md.-based U.S. Foodservice, where an accounting scandal came to light in 2003.
"The company's leadership position in the highly fragmented foodservice industry provides attractive organic and acquisition- related growth opportunities," said Charles Banks, chairman of the board of directors of U.S. Foodservice and a CD&R operating partner.
The retail conglomerate also said Tuesday it has successfully completed the sale of its Polish retail operation to an affiliate of French retailer Carrefour. The deal, which was announced in December 2006, is valued at 375 million euros (US $510 million), and consists of a cash consideration and assumed debt. The final purchase price is subject to customary price adjustments.
The sale of the financially troubled division was announced in May. Closing of the transaction was subject to the fulfillment of customary conditions, among them antitrust clearance and approval by Ahold's shareholders, which was obtained at an Extraordinary General Meeting held last month.
"The sale of U.S. Foodservice is a significant step in implementing the company's strategy announced last November," noted Ahold acting president and c.e.o. John Rishton in a statement. Following an exhaustive review of its business assets late last year, Ahold decided to sell Columbia, Md.-based U.S. Foodservice, where an accounting scandal came to light in 2003.
"The company's leadership position in the highly fragmented foodservice industry provides attractive organic and acquisition- related growth opportunities," said Charles Banks, chairman of the board of directors of U.S. Foodservice and a CD&R operating partner.
The retail conglomerate also said Tuesday it has successfully completed the sale of its Polish retail operation to an affiliate of French retailer Carrefour. The deal, which was announced in December 2006, is valued at 375 million euros (US $510 million), and consists of a cash consideration and assumed debt. The final purchase price is subject to customary price adjustments.