Global Axcess Wins Extension to Exclusive Contract With Food Lion
PONTE VEDRA, Fla. -- Global Axcess Corp., a fully integrated, one-stop source for ATM solutions, announced Wednesday that the company's wholly owned subsidiary, Nationwide Money Services, has won a four and one-half year extension on its exclusive contract with Food Lion, with 1,200 Food Lion stores in 11 Southeastern and Mid-Atlantic states, and 140 Kash n' Karry supermarkets throughout central Florida.
Under the terms of the agreement, Nationwide Money will continue as the exclusive provider of ATM equipment, transaction processing, maintenance, monitoring, and cash management services at all Food Lion and Kash n' Karry stores through April 30, 2011. Currently, Nationwide Money owns and operates 725 ATMs in Food Lion/Kash n' Karry locations, but expects to expand this ATM network to more than 1,300 sites within the next 36 months.
Bob Colabrese, executive vice president of sales at Global Axcess, said, "We are delighted to have the opportunity to perpetuate our long-standing relationship with Food Lion. Moreover, this contract extension effectively secures Global Axcess approximately $6.0 to $12.0 million in annual revenue for the next eight years, based on the historical financial performance of this contract combined with our expected expansion over the next 36 months."
Food Lion LLC is a subsidiary of Delhaize America, the U.S. division of Brussels-based Delhaize Group. Food Lion operates more than 1,190 stores and employs 84,000 associates. Kash n' Karry owns and operates 140 supermarkets in central Florida. Kash n' Karry became a wholly owned subsidiary of Food Lion in December 1996, and in July 2000, the chain became a wholly owned subsidiary of Delhaize America Inc.
Under the terms of the agreement, Nationwide Money will continue as the exclusive provider of ATM equipment, transaction processing, maintenance, monitoring, and cash management services at all Food Lion and Kash n' Karry stores through April 30, 2011. Currently, Nationwide Money owns and operates 725 ATMs in Food Lion/Kash n' Karry locations, but expects to expand this ATM network to more than 1,300 sites within the next 36 months.
Bob Colabrese, executive vice president of sales at Global Axcess, said, "We are delighted to have the opportunity to perpetuate our long-standing relationship with Food Lion. Moreover, this contract extension effectively secures Global Axcess approximately $6.0 to $12.0 million in annual revenue for the next eight years, based on the historical financial performance of this contract combined with our expected expansion over the next 36 months."
Food Lion LLC is a subsidiary of Delhaize America, the U.S. division of Brussels-based Delhaize Group. Food Lion operates more than 1,190 stores and employs 84,000 associates. Kash n' Karry owns and operates 140 supermarkets in central Florida. Kash n' Karry became a wholly owned subsidiary of Food Lion in December 1996, and in July 2000, the chain became a wholly owned subsidiary of Delhaize America Inc.