Dutch food retail group Ahold today announced it is to sell its health store chain De Tuinen to Holland & Barrett Europe for €16.5 million.
The transaction between Ahold and Holland & Barrett parent company, the American firm NBTY, is subject to the customary approvals by regulatory authorities and is expected to be completed in the first quarter of 2003.
De Tuinen, comprises 65 natural product stores located throughout the Netherlands. It has sales of around €30 million and has been part of the Ahold group since 1991. The business sells a range of over-the-counter drugs, dietary supplements, gift items and natural beauty care products.
British business Holland & Barrett has about 1,000 stores in the United States, Great Britain and Ireland. Parent company NBTY has shown good growth this year, despite downward market trends in the US, with sales up 24 per cent in the third quarter.
Ahold said the divestment of De Tuinen fits with its current strategy of focusing on its core businesses. The company said De Tuinen would benefit from an organisation specialised in natural products and dietary supplements.
Customers will not notice a significant change, according to the firm, as De Tuinen will continue to operate under the same brand name and offer the same range of products. De Tuinen's 350 employees are being retained by the new management.
Ahold companies operate approximately 9,000 stores under their own brand names in the United States, Europe, Latin America and Asia. The group also has significant foodservice activities in the United States and three European countries.