4 Acquisitions
2002 Acquisitions
During fiscal 2002, 2001 and 2000, the Company completed several acquisitions (the "2002 Acquisitions", the "2001
Acquisitions" and the "2000 Acquisitions", respectively). Of these acquisitions, the most significant include DAIH, Alliant
Exchange Inc, USF, the 50% interest in ICA, PYA/Monarch and Superdiplo. The Company also completed a series of
individually insignificant acquisitions that are material in the aggregate. All acquisitions have been accounted for by the
purchase method of accounting. The purchase consideration has been allocated based on the estimated fair values of the
assets acquired and the liabilities assumed. As discussed in Note 2, any resulting goodwill was immediately charged to
shareholders' equity in the year of acquisition through November 2000. For acquisitions after December 1, 2000, goodwill
has been capitalized and is amortized over a maximum period of 20 years. The operating results of all acquisitions are
included in the consolidated statements of operations from the respective dates of the acquisitions. The store counts
indicated below represent the number of stores operated at the time of acquisition, unless indicated otherwise.
- Disco Ahold International Holdings N.V.: In January 1998, Ahold purchased a 50% interest in DAIH from Velox Retail
Holdings ("VRH"), a subsidiary of the Velox Group, for USD 368 (EUR 408). At the end of fiscal 2002, DAIH operated
over 350 supermarkets in four Latin American countries: Argentina, Chile, Peru and Paraguay. Until July 2002, VRH
was the Company's joint venture partner in DAIH. As a result of VRH's default on certain indebtedness, Ahold was
required to repay certain debts of VRH and received during July and August 2002, substantially all of VRH's shares
in DAIH (44.1%) for a total cash consideration of USD 448 (EUR 453), thereby assuming full ownership of DAIH.
Furthermore, a loan receivable of USD 5 (EUR 5) has been fully written off. The acquisition resulted in an exceptional
charge of EUR 372, as also discussed in Note 5. As noted in additional information, in July 2003, Ahold sold its 99.6%
stake in the Chilean operations of DAIH's subsidiary, Santa Isabel.
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of the
DAIH acquisition:
At August 9, 2002
Intangible assets
12
Goodwill
85
Tangible fixed assets
525
Financial assets
189
Current assets
266
Total assets acquired
1,077
Provisions
(102)
Non-current liabilities
(498)
Current liabilities
(392)
Total liabilities assumed
(992)
Consideration after exceptional charge
85
The acquired intangible assets have an aggregate weighted-average useful life of approximately 4 years. The intangible
assets include software (3-year weighted-average useful life) and keymoney (5-year weighted-average useful life). The
EUR 85 of goodwill was assigned to the retail trade segment.
During fiscal 2002, Ahold also acquired the following six individually insignificant entities plus the remaining 30% shares
of Indonesia for a total cost of EUR 380, which was paid in cash and assumed debt. Goodwill recognized in these
transactions amounted to EUR 232. Goodwill was assigned to the retail trade and food service segments in the amounts
of EUR 154 and EUR 78, respectively.
- Allen Food: On December 5, 2002, USF acquired Allen Foods, Inc., a broadline food service distributor in the U.S., for
USD 90 (EUR 89). The acquisition resulted in goodwill of USD 63 (EUR 63), which was assigned to the US Food
service segment.
- Santa Isabel: On October 4, 2002, Ahold, through its wholly owned subsidiaries Gestion, Rentas e Inversiones Apoquindo
Limitada and DAIH, completed its tender offer for the outstanding shares of common stock and American Depositary
Shares of Chilean supermarket company Santa Isabel S.A. ("Santa Isabel"). In the cash tender offer 190 Chilean Pesos
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