U.S. Foodservice and Royal Ahold Merger Analytical Essay by Master Researcher

U.S. Foodservice and Royal Ahold Merger
An analysis of the U.S. Foodservice and Royal Ahold international merger.
# 39911 | 2,900 words | 15 sources | MLA | 2002 | US
Published on Oct 15, 2003 in Business (Companies) , Business (International)

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This paper explores the merger between Royal Ahold and U.S. Food Service and shows why U.S. Foodservice was a tempting target for Royal Ahold. The paper discusses how each company achieved a degree of strengthening by the merger which, this paper predicts, may produce the desired sales increase in coming years and so benefit shareholders in the long term.

Royal Ahold
U.S. Foodservice
The Acquisition

From the Paper:

"Royal Ahold is a leading food provider in the United States. In 2002, the company generated consolidated sales of $43.67 billion, which was an increase of 24% over the previous year. The company retail sales rose in 2002 by 13.2% to $26.27 billion. Organic retail sales growth totaled 4.8%.
"The company's 2002 foodservice sales rose 43.5% to $17.42 billion, while organic foodservice sales declined by 1.9%. In 2002, sales in the United States for over 60% of Ahold's worldwide sales, and its six successful U.S. retail operating companies operate more than 1,600 stores along the eastern seaboard.
"Ahold USA oversees the management of U.S. retail operations, with the intention of helping to create and develop synergies and economies of scale in areas such as sourcing, logistics, and IT ("Welcome to Ahold USA"). The company's regional support center is based in Chantilly, Virginia ("Royal Ahold Operating Companies United States").
"Royal Ahold is a Dutch company that has operated in the United States since 1977. The company entered the U.S. market by purchasing the BI LO supermarket chain in the Carolinas and Georgia. The company acquired a second U.S. supermarket company, Carlisle based Giant Food Stores, in 1981. In 1988, the company acquired another American firm, the supermarket chain Finast in Ohio, and in 1991 added Tops Markets, based in Williamsville, New York, followed by Red Food Stores supermarkets in Tennessee and Georgia in 1994, Mayfair in New York's metropolitan area in 1995, Stop & Shop in New England in 1996, Giant Food Inc. based in Landover, Maryland in 1998, and a majority stake in the Internet grocer Peapod, based in Chicago in 2000."

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APA Format

U.S. Foodservice and Royal Ahold Merger (2003, October 15) Retrieved February 28, 2024, from https://www.academon.com/analytical-essay/us-foodservice-and-royal-ahold-merger-39911/

MLA Format

"U.S. Foodservice and Royal Ahold Merger" 15 October 2003. Web. 28 February. 2024. <https://www.academon.com/analytical-essay/us-foodservice-and-royal-ahold-merger-39911/>