Reuters: Bankruptcy News: Dia to buy German firm Schlecker's Iberian drugstores

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Dia to buy German firm Schlecker's Iberian drugstores Sep 28th 2012, 09:44 MADRID, Sept 28 | Fri Sep 28, 2012 5:44am EDT MADRID, Sept 28 (Reuters) - Spanish discount supermarket chain Dia is to acquire the Spanish and Portuguese arms of insolvent German drugstore chain Schlecker, it said on Friday, to diversify its product range and expand its presence in the two countries. Dia has agreed to pay 70.5 million euros ($90.6 million) for Schlecker's 1,127 stores and three distribution centres in Spain and 41 stores and one distribution centre in Portugal. Schlecker filed for insolvency in January. The German company reported net sales of 318 million euros on the Iberian peninsula in 2011. DIA, the world's third-biggest discount grocer, saw profits grow seven-fold in the first half of this year as consumers hunted for bargains in a country where one in four are unemployed. The acquisition is expected to be completed by April next year, Dia said. "This seems like an interesting operation which will increase Dia's presence in Spain at an interesting price," Banesto bank said in an investment note, though added it lacked details such as the likely cost of rebranding Schekler's stores. ($1=0.7775 euros) (Reporting By Paul Day; Editing by Greg Mahlich)

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