Ahold, Alliant in talks?

August 31, 2001 Posted: 2022 GMT

AMSTERDAM (Reuters) -- Dutch supermarkets chain Koninklijke Ahold NV is in advanced talks to buy Alliant Foodservice Inc. for $1.5 billion cash plus assumed debt, a source familiar with the deal said Friday.

The deal, which was reported in the Friday edition of the Wall Street Journal, would strengthen Ahold's U.S. foothold and advance its move into food services. Alliant, a privately held company based in Deerfield, Illinois, is one of the top three U.S. food producers with $6.6 billion in sales last year.

The purchase from New York investment firm Clayton Dubilier & Rice, which is expected to be announced next week, would consolidate the position of Ahold as the world's third-largest supermarket retailer.

Ahold, whose supermarket chains include Giant Food and Stop & Shop in the eastern United States, would also assume $700 million in debt to acquire Alliant, the source said.

Discussions between Ahold and Alliant are at a delicate stage and could still fall apart, the source added.

Officials for Alliant and Ahold declined to comment on any pending transaction.

But in reporting second-quarter earnings Thursday, Ahold said was in active takeover talks with various companies. Ahold Chief Executive Cees van der Hoeven declined to name the firms involved.

Clayton Dubilier & Rice bought Alliant from tobacco giant Philip Morris Cos. in 1995 for $690 million. Private equity companies like Clayton Dubilier typically buy and upgrade companies for later sale.

Ahold is already a major food distributor and retailer in the United States, with regional sales of $27.8 billion that account for over 58 percent of worldwide revenues.  Last year, Ahold purchased U.S. Foodservice, the second-biggest U.S. food service company after Sysco Corp., in a transaction then worth $3.6 billion. U.S. Foodservice then began acquiring other companies, including PYA/Monarch, a major  southeastern food distributor, for $1.6 billion from Sara Lee Corp.

	Want the full story? Search for free company info...
	Enter Company Name:-