Zaandam, The Netherlands, March 1, 2004 - Ahold today announced it has sold its Brazilian retail chain Bompreço to Wal-Mart Stores Inc. Simultaneously, Ahold sold its Brazilian credit card operation Hipercard to Unibanco S.A. The combined enterprise value of these operations amounts to approximately USD 500 million. This joint transaction is expected to close in the course of today.
The assets consist of Bompreço (a food retailer with 118 hypermarkets and supermarkets with a leading position in Northeastern Brazil) and Hipercard (the leading credit card in Northeastern Brazil with over 2 million cardholders). G. Barbosa, Ahold's other Brazilian retail operation with 32 stores that was acquired by Ahold in January 2002, is not included in the transaction.
Wal-Mart Stores, Inc., started operations in Brazil in May 1995. Operating under different banners, the company's stores and clubs are located in the states of Sao Paulo, Paraná, Rio de Janeiro and Minais Gerais. With sales of BRL1.9 billion in 2003, Wal-Mart Brazil has approximately 7,000 employees.
Unibanco, the third largest private-sector Brazilian financial group, focuses on retail and wholesale banking, and insurance and pensions and wealth management.
Commenting on the agreements, Theo de Raad, the Ahold Corporate Executive Board member responsible for Latin America and Asia, said: 'We are delighted to have found buyers of such quality as Wal-Mart and Unibanco. They offer an excellent fit for Bompreço and Hipercard and we are confident that this will prove great for customers, associates, suppliers and others involved.'
The divestment of Ahold's activities in Brazil is part of Ahold's strategy to optimize its portfolio and to strengthen its financial position by reducing debt.
Ahold first entered the Brazilian market in 1996 through an agreement with the owner of Bompreço. In October 2001, Bompreço became a wholly-owned subsidiary of Ahold. Unaudited 2003 net sales for Bompreço amounted to approximately BRL 2.9 billion (approximately Euro 843 million). Bompreço and Hipercard employ more than 20,000 people.
