Delhaize to buy certain BI-LO assets

BRUSSELS Delhaize Group announced that it has entered into a non-binding letter of intent with BI-LO to acquire a substantial majority of BI-LO's assets, including associated inventory, for a purchase price of $425 million in cash. This announcement was made in the context of BI-LO's bankruptcy proceedings in the United States Bankruptcy Court for the District of South Carolina.

BI-LO is a food retailer that currently operates 214 stores in North Carolina, South Carolina, Tennessee and Georgia and employs approximately 15,500 people. The company is headquartered in Mauldin, S.C. On March 23, 2009, BI-LO and certain of its affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of South Carolina. The included BI-LO assets are estimated to have realized over USD 2 billion in sales in 2008.

Rick Anicetti, EVP Delhaize Group and president and CEO of Food Lion, said, "We at Food Lion have great admiration for the associates and stores at BI-LO. We believe our markets and service philosophy are complementary and we look forward to continuing our discussions with BI-LO."