Sligro Food Group, a Dutch retailer, has reached an agreement to acquire Sanvier, the parent company of Sanders Supermarketen, and owner of a meat processing business, for a purchase price of around €50m, which includes real estate owned privately by the Sanders family. The parties aim to formalize the transaction in August.

While 50% of the purchase price is for real estate, a further 20% is for the acquiree's net assets and about 30% is goodwill in the stores and other intangible assets. The company said that the purchase price will be funded from existing credit facilities.

Sligro Food Group said that it will transform most of the Sanders Supermarkten into EMTE supermarkets while retaining the Sanvier meat concept which is a further addition to the focus on fresh foods at EMTE. A relatively large number of Sanders Supermarkten will be relocated and expanded in the next few years. A few small stores will be sold.

Distribution will be relocated to the retail distribution centre in Putten. Sanders' meat processing company will also work for the EMTE supermarkets. Sanders' logistic operation will be converted to Sligro Bezorg Service, through which Sligro will have a national network of ten delivery centres for its foodservice customers.

Sanders Supermarkten operates 22 full-service supermarkets with floor space of around 17,000 sqmt in the Twente region. The supermarkets, meat processing company, distribution centre and head office employ some 500 staff on a fulltime basis.

The listed Sligro Food Group encompasses food retail and foodservice companies selling directly and indirectly to the entire Dutch food and beverages market. At year end 2009, Sligro Food Group had 123 supermarkets.

Koen Slippens, executive board chairman of Sligro Food Group, said: "We are impressed by Sanders Supermarkten' strong position in the Twente region, where EMTE already has four outlets. We are pleased we can further strengthen our business by acquiring Sanders, especially as EMTE is developing powerfully in very competitive market conditions."

Rein Sanders, managing director of Sanders Supermarketen, said: "Although our company has a long and successful history, we saw that in due course we would be too small in an increasingly concentrated food retail market. In EMTE we have found a partner which can and will expand our strong position in the Twente region and at the same time maintain employment in the region."