Ahold sells US convenience unit
focus on food retailing. The Golden Gallon fuel and convenience
store chain in the US is the latest divestment, with North
Carolina-based The Pantry acquiring the 138-store chain.
Ahold, the Dutch retail group, is continuing with the sale of its non-core assets as it tries to raise cash to offset the profit shortfall related to accounting fraud.
The company has today announced the sale of Golden Gallon, its fuel and merchandise convenience store operation in the south eastern US, to a group called The Pantry. The price paid was not disclosed, and the deal is expected to be completed in the final quarter.
The divestment of Golden Gallon is part of Ahold's strategic plan to restructure its portfolio to focus on core food businesses - a plan put in place before the discovery of widespread fraud at another American unit, US Foodservice, but which has become all the more important as a result.
The assets to be sold include the Golden Gallon operations, working capital and all of the real estate, Ahold said in a statement. As well as the business itself, The pantry will take on 1,000 store associates and a further 70 non-store employees.
Ahold acquired Golden Gallon in May 2000. The 138-store chain is centred in the Chattanooga region and stretches south to Atlanta and north to middle and eastern Tennessee. Stores are situated along major interstate highways and in suburban areas. The business posted sales of around $375 million (€345m) in 2002.
"The acquisition of the Golden Gallon convenience store chain is an excellent addition to our portfolio of stores and strengthens our leadership position within the dynamic south eastern region of the US," commented Peter J. Sodini, president and CEO The Pantry.
"Golden Gallon is a high quality addition to our network of stores with excellent store locations and historical sales volumes. Currently we operate 14 stores in Tennessee and 56 in Georgia. This acquisition significantly increases our presence in the Tennessee and Georgia market providing us the opportunity to capitalise on synergies of the combined group."
The Pantry, headquartered in Sanford, North Carolina, is the leading convenience store operator in the south eastern US and the third largest independently operated convenience store chain in the country.
It has around 1,300 stores in 10 states with 2002 sales of some $2.5 billion.
Ahold has already sold a number of smaller businesses as it struggles to refocus on its core operations. Disposals include the Jamin confectionery retail unit and the De Tuinen natural products retail chain in the Netherlands, as well as the Santa Isabel supermarket group in Chile.
