Ahold hopes to sell off other chains in the US and Europe

The two parties valued the deal at 685m euros ($850m; �472m).

Ahold, the world's third-biggest stores group, hopes to boost its profits and cut debt after a billion-euro earnings overstatement last year.

The company has already sold assets in Latin America and Asia and is in the process of selling its Bi-Lo, Bruno's and Tops chains in the United States.

"The (Spanish) divestment is part of our Road to Recovery strategy to optimise our portfolio and to strengthen our financial position," said Ahold chief executive Anders Moberg in a statement.

Deli chain

The Spanish operation had net sales of around 2bn euros in 2003, and has been bought by Permira's company CMA Sarl.

This is the private equity group's first purchase in Spain.

The deal should be closed by the end of the year subject to regulatory approval.

Ahold also hopes to sell off its Deli Xl Benelux food service unit, which last year had net sales of 837m euros.

Dutch retail group Sligro, with Belgium's Colruyt, and financial investment firms, are possible contenders.

Last November, Ahold said it would sell assets worth 2.5bn euros, and it plans to close the sale of Bi-Lo and Bruno's in the US by the end of the year.