RICHFOOD BUYS CAMELLIA UNIT

MECHANICSVILLE, Va. -- Richfood Holdings here said it has completed the previously announced acquisition of the assets of the wholesale division of Camellia Food Stores, Norfolk, Va., for approximately $7.1 million.

etail customers have signed five-year supply agreements under which Richfood becomes their primary wholesaler.

Camellia's wholesale volume last year was about $160 million. Richfood executives told SN they expect to retain about 85% of that business, or about $136 million, boosting total Richfood volume to approximately $1.75 billion.

Richfood will service Camellia and its former customers -- located in Delaware, Maryland, Virginia and North Carolina -- out of its 1.3 million-square-foot warehouse here, the company said. Richfood already services retailers in those areas.