BRUSSELS, Belgium, May 31, 2005 (PRIMEZONE) -- Delhaize Group (Euronext Brussels:DELB) (NYSE:DEG), the Belgian international food retailer, announced today that it has completed the earlier announced acquisition of Cash Fresh in Belgium, after unconditional approval by the Belgian antitrust authorities. Cash Fresh is a profitable chain of 43 supermarkets mainly in northeastern Belgium.
"We look forward to serving our new customers of Cash Fresh," commented Arthur Goethals, Chief Executive Officer of Delhaize Belgium. In fiscal year 2004, Cash Fresh posted EUR 209 million in sales.
Delhaize Group has acquired Cash Fresh for a maximum amount of EUR 118.6 million, subject to contractual adjustments. An additional EUR 51 million has been paid to acquire real estate assets of Cash Fresh.
The results of Cash Fresh will be consolidated in Delhaize Group's results from May 30, 2005. The transaction is expected to be earnings accretive in 2005 and beyond. Delhaize will convert the Cash Fresh stores to Delhaize banners over time.
Delhaize Group
Delhaize Group is a Belgian food retailer present in eight countries on three continents. At the end of March 2005, Delhaize Group's sales network consisted of 2,571 stores. In 2004, Delhaize Group posted EUR 17.9 billion (USD 22.2 billion) in net sales and other revenues and EUR 299.8 million (USD 372.9 million) in net profit. At the end of 2004, Delhaize Group employed approximately 138,000 people. Delhaize Group is listed on Euronext Brussels (DELB) and the New York Stock Exchange (DEG).
This press release is available in English, French and Dutch. You can also find it on the corporate web site at http://www.delhaizegroup.com. Questions can be sent to investor@delhaizegroup.com.
Some of the statements in this press release and other written and oral statements made from time to time by Delhaize Group and its representatives are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements include, but are not limited to, statements about strategic options, future strategies and the anticipated benefits of these strategies. These forward-looking statements generally can be identified as statements that include phrases such as "believe", "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 or remodel 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, 2003 and other periodic filings made by Delhaize Group and Delhaize America with the U.S. Securities and Exchange Commission, which risk factors are incorporated herein by reference. Delhaize Group and Delhaize America disclaim 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.