(Reuters) – Belgian supermarket group Delhaize (DELB.BR) (DEG.N) said on Monday that it agreed to buy a “substantial majority” of bankrupt U.S. supermarket chain BI-Lo LLC’s assets for $425 million in cash.
Delhaize said it plans to integrate the assets included in the deal with its wholly owned U.S. subsidiary Food Lion LLC.
BI-Lo, which is owned by private equity group Lone Star Funds [LS.UL], filed for bankruptcy protection on March 23, just days before two loans secured by the company’s 215 food stores were to mature.
The assets will be open to other bids in an auction and another buyer could top Delhaize’s proposed price. (Reporting by Santosh Nadgir in Bangalore; Editing by Maju Samuel)