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AHOLD CITES 10 ACQUISITION OR VENTURE TARGETS

ZAANDAM, Netherlands -- Ahold here has a list of 10 supermarket companies around the world it would either like to acquire or join in a joint venture, according to Cees van der Hoeven, the company's president and chief executive officer. ely essential, but it would help us become a world player," he told the investors.He explained the overall acquisition strategy is part of a company effort to double

ZAANDAM, Netherlands -- Ahold here has a list of 10 supermarket companies around the world it would either like to acquire or join in a joint venture, according to Cees van der Hoeven, the company's president and chief executive officer.

ely essential, but it would help us become a world player," he told the investors.

He explained the overall acquisition strategy is part of a company effort to double sales revenues in the next five years.

While van der Hoeven did not name any of the 10 takeover candidates, he did briefly describe some of their characteristics.

Location: Van der Hoeven said three of the companies are in the United States, three in South America and four in Europe.

Revenues: The total sales of the 10 candidates are roughly equal to Ahold's present net sales, about $35 billion.

Corporate culture: Eight of the 10 companies are family-owned, "which, with their culture and structure, will fit very well with us," noted van der Hoeven.

"From the viewpoint of families who have built up such a top organization over a span of one or more generations, it is almost essential that the name, identity and culture be preserved," he said. "The owners of these see the consolidation process continue. True, they sometimes look on in sorrow, but they also realize that they cannot remain on the sidelines."

Ahold is already negotiating with some of the candidates on the list, and will probably acquire at least one of them within the next year, van der Hoeven added.

Among the essential components of Ahold's growth strategy he cited were strong internal growth and small, fill-in acquisitions of existing chains.

Van der Hoeven noted Ahold has been increasing sales roughly 7% annually and growing nets almost 15%. "In practically all places where we are active," he said, "we are gaining market share and constantly improving our margins."

As for adding small companies, he said, Ahold has in the last year made acquisitions in Spain, Poland, Argentina and Brazil. "These are very profitable acquisitions," he added.