Sligro to acquire EM-TÉ Holding B.V.

Sligro Beheer N.V., Veghel, and EM-TÉ Holding B.V., the holding company of EM-TÉ Supermarkten B.V., Kaatsheuvel, announce that they expect to reach agreement on the acquisition of EM-TÉ Supermarkten B.V. by Sligro Beheer N.V.

EM-TÉ Supermarkten operates eleven supermarket/off-licence outlets in the Central Brabant region and is planning to open a twelfth store at the end of 2002. Its head office and distribution centre are located in Kaatsheuvel. The EM-TÉ stores are service-oriented, with the emphasis on fresh produce, attractive prices and a comprehensive product range. With a staff of 512 full-time equivalents and an average sales area of 1,100 m2, the stores generated sales of €103 million in 2001. Turnover excluding VAT totalled €94 million and net profit amounted to €4 million.

Sligro is a quoted full-service wholesaler covering all of the Netherlands. With its range of over 50,000 food and related non-food products, Sligro seeks to meet all the consumerÂ's food and drink needs. The Sligro group, which employs 2,129 staff on a full-time equivalent basis, reported total turnover of €1,171.9 million and a net profit of €25.3 million in 2001. Sligro has grouped its existing supermarket activities under its Prisma subsidiary. Prisma is a food wholesaler serving over 300 independent supermarkets which operate under the Golff, MeerMarkt, Attent and Zomermarkt/Rekra formats and generated sales of €441 million in 2001. The retail purchasing activities of Sligro, Prima and EM-TÉ Supermarkten have been grouped under Superunie.

In accordance with the Merger Code of the Social and Economic Council (SER), the employeesÂ' organisations and the SER have been notified of the proposed acquisition. The Staff Council has been asked to give its recommendation. Notification of the transaction will be given to the Netherlands Competition Authority.

The acquisition of EM-TÉ Supermarkten by Sligro will not affect the numbers of people employed. EM-TÉ SupermarktenÂ's present executive board and management will remain with the company.

The parties are aiming to formalise the transaction in May 2002. Sligro expects the acquisition to have a positive effect on its net profit and earnings per share in 2002, both before and after the amortisation of goodwill. Synergy gains of approximately €1 million are expected in 2003.

The purchase price (debt-free) will be €35 million, of which goodwill accounts for approximately €28 million. Together with EM-TÉ Supermarkten, Sligro will also acquire the properties occupied by the EM-TÉ stores at a net cost of €17 million, which will be funded by existing lines of credit.

(source: Sligro)

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