ZAANDAM, The Netherlands -- Ahold here said last week it has signed a definitive agreement to acquire Golden Gallon, Chattanooga, Tenn., which operates 134 fueling stations and convenience stores in the Southeast.
tured as an asset purchases and covers the Golden Gallon brand name, the stores, their inventory and cash, as well as 20 sites for future stores and other real estate.
Ahold said the acquisition is subject to regulatory approval and is expected to close by the end of May.
Golden Gallon will be operated as a separate regional division of Bi-Lo, Greenville, S.C., one of Ahold's five U.S. operating companies, Ahold said. Bi-Lo currently operates 281 supermarkets and had 1999 sales of $3 billion.
The company noted there is no geographical overlap between Golden Gallon and Bi-Lo.
The company also said synergy benefits from the deal include leveraging Ahold's procurement capabilities on many Golden Gallon items and Bi-Lo benefitting from Golden Gallon's volume in food and tobacco.
Robert Tobin, president and chief executive officer, Ahold USA, Chantilly, Va., said, "This move is in line with our U.S. initiatives to meet the mobile customer's many requirements by offering a fuel-and-shopping option in high-quality convenience stores along busy highways."