Dutch grocer Royal Ahold NV will acquire a Virginia super market chain in a deal valued at $140 million, the company said Thursday.
The acquisition of Ukrop's Super Markets Inc. includes the family owned grocer's 25 locations as well as its inventory, equipment and lease agreements. Ukrop employees will be hired by Ahold's Giant-Carlisle division.
The deal adds to Ahold's presence in Virginia, where the company already operates grocery stores under the Giant and Martin's brands.
Under the terms of the deal, Richmond, Va.-based Ukrop will be owned by the Giant-Carlisle division. That unit also operates stores in Maryland, Pennsylvania and West Virginia.
The deal is expected to close in the first quarter of 2010.
"This acquisition is part of Ahold's profitable growth strategy," Ahold CEO John Rishton said in a statement.
Ahold gets nearly two-thirds of its revenue from its U.S. operations. Its other U.S. divisions include Stop & Shop, Giant-Landover, and Peapod, an Internet-based grocery delivery service.