2000 Acquisitions
During fiscal 2001, Ahold also acquired the following six individually insignificant entities for a total cost of EUR 1,299,
which was paid in cash and assumed debt. Goodwill was assigned to the retail trade and food service segments in the
amounts of EUR 367 and EUR 120, respectively.
- Bruno's Supermarkets: In December 2001, Ahold completed its acquisition of Bruno's Supermarkets ("Bruno's") for a
total consideration of USD 578 (EUR 644) including assumed debt. Bruno's is a food retailer operating in the U.S. The
acquisition resulted in goodwill of USD 93 (EUR 104), which was assigned to the U.S. retail trade segment. In fiscal
2002, an additional payment of USD 43 (EUR 49) was made to the former owners, which resulted in additional goodwill
of EUR 45.
- Peapod: In addition to its 51% share purchased in 2000, in August 2001, Ahold acquired an additional 12,581,632
shares of the U.S. on-line grocer Peapod's ("Peapod") common stock pursuant to a tender offer for a price of USD 2.15
per share, or USD 27 (EUR 30) in the aggregate. Additionally, Ahold exercised warrants to purchase additional shares of
Peapod's common stock and, through a merger, converted the common stock held by minority shareholders into the right
to receive cash consideration of USD 2.15 per share, resulting in Ahold owning 100% of Peapod's outstanding common
stock.
Ahold paid approximately EUR 37 for the portion of Peapod that it did not already own as of the end of 2000. The fair
value of the net liabilities assumed in 2001 was approximately USD 12 (EUR 13) resulting in goodwill of approximately
USD 47 (EUR 53). Combined with the goodwill related to Peapod of approximately USD 55 (EUR 58) purchased during
2000, a total of USD 102 (EUR 111) of goodwill was assigned to the U.S. retail trade segment.
- Cemetro: In July 2001, Superdiplo completed the acquisition of Supermercados Cemetro for 11,061 Spanish Pesetas, or
approximately EUR 66. Cemetro operates a chain of stores on the Canary Islands. The acquisition resulted in goodwill of
EUR 44, which was assigned to the Europe retail trade segment.
- Mutual: In May 2001, USF acquired Mutual Wholesale Company, a broadline food service distributor in the U.S., for
approximately (USD 112) EUR 134, including assumed debt of (USD 7) EUR 7. The acquisition resulted in goodwill
of (USD 73) EUR 83, which was assigned to the U.S. food service segment.
- Grand Union: In March 2001, two of Ahold's U.S. operating companies, Tops Markets ("Tops") and Stop Shop, acquired
56 supermarkets and eight sites from C&S Wholesale Distributors, which acquired the locations from Grand Union, for
approximately USD 209 (EUR 233). The acquisition resulted in a total of USD 3 (EUR 3) of goodwill, which was
assigned to the U.S. retail trade segment, along with approximately USD 77 (EUR 87) intangible favorable lease rights.
- Parkway: In February 2001, USF acquired Parkway Food Service, a broadline food service distributor in the U.S., for
approximately USD 28 (EUR 32). The acquisition resulted in goodwill of USD 19 (EUR 22), which was assigned to the
U.S. food service segment.
- DAIH: In July 2001, Ahold acquired an additional 290 shares in DAIH from its joint venture partner VRH for approximately
USD 75 (EUR 86), increasing its percentage in DAIH to 55.9%. The acquisiton resulted in goodwill of USD 70 (EUR 80).
- Bomprego: In December 2001, Ahold completed a public tender offer to delist Bomprego and to acquire the preference
shares which were still outstanding. Total consideration paid for these preference shares amounted to EUR 67. This
resulted in goodwill of EUR 45.
- U.S. Foodservice: In April 2000, Ahold acquired USF for approximately USD 3.6 billion (EUR 3.8 billion), including the
assumption of approximately USD 925 (EUR 971) in debt. In July 2000, USF acquired GFG Foodservice, a broadline
distributor in the U.S. for approximately USD 22 (EUR 25). These acquisitions resulted in goodwill of USD 3 billion
(EUR 3 billion), which was charged directly to shareholders' equity.
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