Dutch Giant Exploring Harris Teeter Buyout

by Christopher Freeburn | February 22, 2013 10:48 am

grocery checkout 630 300x199 Dutch Giant Exploring Harris Teeter Buyout[1]Sources tell Bloomberg that a Dutch supermarket operator has indicated a interest in acquiring[2] Harris Teeter Supermarkets (NYSE:HTSI[3]).

While no bid has yet been made, Royal Ahold has reportedly communicated its interest to JPMorgan Chase (NYSE:JPM[4]), which is advising Harris Teeter on a potential deal. Harris Teeter has a market value north of $2 billion.

Earlier this month, Harris Teeter announced that it would explore the possibility of a sale after two unnamed private equity firms expressed an interest in buying the chain. Harris Teeter generated $4.54 billion in revenue last year from more than 200 supermarkets across eight southeastern states and Washington, D.C.

Royal Ahold owns the Stop & Shop supermarket chain in the U.S. A Rabobank analyst called the acquisition of Harris Teeter by the Dutch company a “likely deal.”

Other potential bidders for Harris Teeter include Kroger (NYSE:KR[5]) and Publix.

Shares of Harris Teeter rose more than 1% in Friday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/09/grocery_checkout_630.jpg
  2. has indicated a interest in acquiring: http://www.businessweek.com/news/2013-02-21/harris-teeter-said-to-draw-interest-from-dutch-rival-ahold
  3. HTSI: http://studio-5.financialcontent.com/investplace/quote?Symbol=HTSI
  4. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  5. KR: http://studio-5.financialcontent.com/investplace/quote?Symbol=KR

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