Friday, March 31, 2000
Tops Markets, Inc., a wholly owned supermarket company of Royal Ahold, has signed an agreement to acquire Sugar Creek convenience/gas stores. Sugar Creek operates 87 merchandise and fuel outlets in New York State with sales of approximately USD 142 million. The stores have an average selling space of 2,000 sq. ft. and carry a range of milk products, packaged beverages, beer, wine and tobacco, among other items.
Tops operates 124 large supermarkets and superstores and 117 Wilson Farms Neighborhood Food Stores in Western New York, Northeast Ohio and Northern Pennsylvania. 1999 sales amounted to USD 2.7 billion.
Once the transaction is completed, expected by May 2000, the majority of Sugar Creek stores will be renamed Wilson Farms and transformed into neighborhood stores offering food and other services including gas and oil. Upon completion of the transaction, Wilson Farms will operate approximately 200 convenience stores across New York State. The asset transaction is subject to various conditions including the outcome of due diligence and regulatory approvals.
Comments by Tops President and CEO, Steve Odland
'The acquisition of Sugar Creek stores grants Wilson Farms immediate entry into new, desirable markets. Overall the transaction provides Wilson Farms with significant new growth opportunities and the chance to service many more customers,' stated Steve Odland, Tops Markets, Inc. President and CEO. 'Through the strategic positioning of Tops Markets coupled with the Wilson Farms stores, we can provide our customers with larger variety and greater value throughout our market area, while capitalizing on the economies of scale and synergies of our operations. This is an excellent expansion for our business and we're excited about gaining so many new customers who will be able to take advantage of the quality services for which Wilson Farms is recognized in New York state.'
Ahold Background
Tops Markets, Inc. is one of five successful supermarket companies Royal Ahold operates along the US eastern seaboard with 1999 sales of USD 20.3 billion. Ahold companies in the US are Tops, Stop & Shop, Giant-Landover, BI-LO and Giant-Carlisle and they jointly operate close to 1,100 stores.
Royal Ahold, a prominent international food provider, recently announced the acquisition of U.S. Foodservice, a distributor of food and food-related items and services to over 140,000 institutional customers throughout the United States. U.S. Foodservice has annual sales of approximately USD 7 billion.
In addition to its presence in the United States, Ahold also operates over 3,000 stores in Europe, Latin America and Asia. Worldwide 1999 sales totaled Euro 33.6 billion. In Europe, Ahold has announced its 50/50 joint venture with Scandinavia's leading food retailer. The ICA Group had 1999 sales of Euro 6.7 billion.