Winn-Dixie scooped up by rival retailer
Bi-Lo on Monday announced that it is acquiring U.S. Southeast supermarket chain Winn-Dixie for USD 530 million. The deal is expected to close in the next 60 to 120 days.
The Greenville, S.C.,-based retailer, which is owned by private equity firm Lone Star Funds, said Winn-Dixie will become a subsidiary of Bi-Lo but will keep its own banner. The combined company will operate 690 stores in nine states throughout the Southeast. ??
Bi-Lo said it will pay USD 9.50 in cash per share of Winn-Dixie stock, translating to a 75 percent premium on Winn-Dixie’s Friday close of USD 5.43.?
Winn-Dixie has about 46,000 employees and 480 grocery stores in Florida, Alabama, Louisiana, Georgia and Mississippi.?? Bi-Lo employs about 17,000 people and operates 207 supermarkets in North Carolina, South Carolina, Georgia and Tennessee.
??“With no overlap in our markets, the combined company will have a perfect geographic fit that will create a stronger platform from which to provide our customers great products at a great value, while continuing to offer exceptional service,” said Randall Onstead, Bi-Lo chairman.??
The companies said they do not currently expect any store closures as a result of the deal. Bi-Lo and Winn-Dixie said the combined company’s executive management team structure and headquarters location will be decided in the coming weeks, but they’re expected to maintain a presence in both Greenville and Jacksonville, Fla.
??“By combining Bi-Lo and Winn-Dixie, we anticipate building a company that is stronger than our individual businesses and creating opportunities for continued advancement through the cross-pollination of our people and the sharing of ideas across our organizations,” said Winn-Dixie CEO Peter Lynch.