RICHFOOD ACQUIRES CIVILIAN DIVISION OF B. GREEN & COMPANY, INC.
RICHMOND, Va., Jan. 22 /PRNewswire/ -- Richfood Holdings, Inc. (NASDAQ:RCHF) today announced its acquisition of the assets of B. Green & Company, Inc.'s Civilian Wholesale Division. The Civilian Division supplies grocery products and related services to approximately 250 supermarkets in the Mid-Atlantic region. Sales for the division's most recent fiscal year exceeded $300 million. In connection with the transaction, Richfood acquired B. Green's civilian inventory, customer notes and accounts receivable and customer supply agreements. In addition, Richfood entered into long-term supply agreements with B. Green's cash & carry and retail grocery operations, as well as with Farm Fresh of Maryland, a thirteen store supermarket chain. The total purchase price of the acquisition was approximately $55 million. Richfood will serve former B. Green customers through Richfood's 1.2 million square foot Mechanicsville, Va. warehouse. Integration of B. Green's Civilian Wholesale business into Richfood's operations has already begun and is expected to be completed after a transition of approximately 60 days. Donald D. Bennett, president & chief executive officer of Richfood, said: "This acquisition represents a major achievement for Richfood, our customers and our shareholders. We have added substantial sales volume to our existing sales base in the northern portion of our current marketing area. Servicing these customers out of our warehouse will allow us to further increase efficiency and productivity of our existing inventory warehousing and delivery systems." A B. Green & Company, Inc. spokesman said: "The decision to sell the Civilian Division, which has been part of the family business for over 75 years, was a difficult one. However, we have decided to focus our efforts on improving and expanding the operations of our retail and cash and carry grocery stores. We are delighted that the business of the Civilian Division will be continued by Richfood, which has an excellent reputation for integrity, service and pricing. We have pledged to our customers that we will work with Richfood to ensure a smooth transition and the continuity of a high level of service. We look forward to being a Richfood customer." Previously, on Dec. 31, 1992, B. Green announced that it had sold the assets of its Military Division to Nash Finch, Co., a Minneapolis- based grocery wholesaler. Richfood Holdings, Inc. is the largest wholesale food distributor in its Mid-Atlantic operating region. The company sells a complete selection of national brand and private label groceries, frozen food, meat, produce, dairy, bakery and delicatessen products to approximately 400 customers that operate approximately 650 retail supermarkets in Virginia, Maryland, North Carolina, Delaware, West Virginia and the District of Columbia. -0- 01/22/93 /CONTACT: John E. Stokely, chief financial officer of Richfood Holdings, 804-746-6381; or June Filingeri or Bernie Kilkelly of Morgen- Walke Associates, 212-986-5900, for Richfood Holdings, Inc./ (RCHF)
CO: Richfood Holdings, Inc.; B. Green & Company, Inc. ST: Virginia IN: FOD SU: TNM
AH -- NY055 -- 7974 01/22/93 14:23 EST
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|Date:||Jan 22, 1993|
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