Ahold in $7.1bn US sell-off deal

Dutch supermarket group Ahold has sold its US Foodservice catering business to two private equity groups in a deal worth $7.1bn (£3.5bn).

The move will allow the world's fourth biggest food retailer to focus on overhauling its other US operations.

Ahold said it had sold US Foodservice to private equity firms Kohlberg Kravis Roberts and Clayton, Dubilier & Rice.

Ahold has been attempting to rebuild its fortunes since a $1.3bn accounting scandal hit US Foodservice in 2003.

The ex-chief financial officer of the US business was last year given three years' probation, after pleading guilty to one count of conspiracy to commit accounting fraud.

"(Ahold) can move on to the next stage now, paying back some of the proceeds to shareholders, reducing debt and focus on sales growth in the US," said Kepler Equities analyst Ton van Ooijen.

Maryland-based US Foodservice employs 27,000 workers and operates 70 distribution centres across the US, delivering food to major customers including McDonald's.