Bi-Lo to purchase Winn-Dixie chain
The Business Journal by Christian Conte, Reporter
Date: Monday, December 19, 2011, 12:30pm EST
Bi-Lo plans to expands its territory into Florida by purchasing the Winn-Dixie chain.
Bi-Lo plans to expands its territory into Florida by purchasing the Winn-Dixie chain.
Christian Conte
Reporter - Jacksonville Business Journal
Email | LinkedIn | Twitter | Facebook
The Bi-Lo Bi-Lo Latest from The Business Journals Winn-Dixie, Bi-Lo to merge in 0M dealBi-Lo to purchase Winn-Dixie chainWinn-Dixie to be acquired by BI-LO Follow this company supermarket chain plans to acquire Winn-Dixie Stores Inc. Winn-Dixie Stores Inc. Latest from The Business Journals Bi-Lo to purchase Winn-Dixie chainWinn-Dixie acquisition and merger timelineWinn-Dixie to be acquired by BI-LO Follow this company and merge the companies into a privately held, 690-store grocery operation.
The deal is worth $560 million, according to multiple media reports.
Under the agreement, Greenville, S.C.-based Bi-Lo will acquire all outstanding shares of Winn-Dixie stock. Winn-Dixie shareholders will receive $9.50 in cash per share of Winn-Dixie common stock, representing a premium of about 75 percent over the closing price of Winn-Dixie common stock on Friday, according to a press release. After the merger, the company will become a private enterprise and will be delisted from the NASDAQ stock exchange.
Peter Lynch, chairman, chief executive and president of Jacksonville, Fla.-based Winn-Dixie, calls the transaction the next logical step in the company's journey.
"The company's come a long ways," he says, referring to the company's long road since its emergence from Chapter 11 bankruptcy protection in 2007. "I feel very, very good about the transaction.
“This transaction with Bi-Lo provides Winn-Dixie shareholders with a significant cash premium for their shares. We believe this transaction is in the best interests of our shareholders,” Lynch adds. “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, all to the benefit ...
The Bi-Lo Bi-Lo Latest from The Business Journals Winn-Dixie, Bi-Lo to merge in 0M dealBi-Lo to purchase Winn-Dixie chainWinn-Dixie to be acquired by BI-LO Follow this company supermarket chain plans to acquire Winn-Dixie Stores Inc. Winn-Dixie Stores Inc. Latest from The Business Journals Bi-Lo to purchase Winn-Dixie chainWinn-Dixie acquisition and merger timelineWinn-Dixie to be acquired by BI-LO Follow this company and merge the companies into a privately held, 690-store grocery operation.
The deal is worth $560 million, according to multiple media reports.
Under the agreement, Greenville, S.C.-based Bi-Lo will acquire all outstanding shares of Winn-Dixie stock. Winn-Dixie shareholders will receive $9.50 in cash per share of Winn-Dixie common stock, representing a premium of about 75 percent over the closing price of Winn-Dixie common stock on Friday, according to a press release. After the merger, the company will become a private enterprise and will be delisted from the NASDAQ stock exchange.
Peter Lynch, chairman, chief executive and president of Jacksonville, Fla.-based Winn-Dixie, calls the transaction the next logical step in the company's journey.
"The company's come a long ways," he says, referring to the company's long road since its emergence from Chapter 11 bankruptcy protection in 2007. "I feel very, very good about the transaction.
“This transaction with Bi-Lo provides Winn-Dixie shareholders with a significant cash premium for their shares. We believe this transaction is in the best interests of our shareholders,” Lynch adds. “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, all to the benefit of our guests, suppliers, team members and the neighborhoods that Winn-Dixie serves.”
All Bi-Lo stores will continue to operate under that brand name, and Winn-Dixie stores will remain known as Winn-Dixie, he says.
The companies do not expect any store closures as a result of the merger. The combined executive-management structure and headquarters location will be decided as the companies move closer to finalizing the transaction; however, it is expected that the combined company will maintain a presence in both Greenville and Jacksonville, according to the press release.
The company will have 63,000 employees in eight Southeastern states.
“We are very excited about the merger of Bi-Lo and Winn-Dixie,” says Randall Onstead, chairman of Bi-Lo. “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.”
The transaction is expected to close within 60 to 120 days, subject to the approval of Winn-Dixie shareholders and other customary closing conditions.
Bi-Lo operates 207 supermarkets in the Carolinas, Georgia and Tennessee, including 36 stores in the Charlotte region.
It emerged from Chapter 11 bankruptcy reorganization in 2010. While Bi-Lo was under bankruptcy protection from creditors in 2009, Salisbury-based Delhaize America Delhaize America Latest from The Business Journals Bi-Lo to purchase Winn-Dixie chainWells Fargo starts foreclosing on pair of JDH developments Revenue up at Food Lion parent Delhaize Follow this company — owner of the Food Lion chain — made an unsuccessful bid to purchase Bi-Lo for $425 million.
Winn-Dixie (NASDAQ:WINN) operates 482 grocery stores throughout five Southeastern states.
Winn-Dixie closed its 37 stores in the Charlotte region — as well as all its operations in the Carolinas — in 2005.
Read Full Article
