Supermarket chain Winn-Dixie is being sold for $560 million to Bi-Lo, creating an organization of approximately 690 grocery stores throughout the southeastern United States.
Under the terms of the agreement, Jacksonville, Fla.-based Winn-Dixie will become a privately held subsidiary and Bi-Lo will acquire all the outstanding shares of Winn-Dixie stock. Winn-Dixie shareholders will receive $9.50 in cash per share of Winn-Dixie common stock, about 75 percent of the company’s closing price on Dec. 16.
The Winn-Dixie board of directors unanimously approved the agreement, and he transaction is expected to close in the next 60 to 120 days, subject to the approval of Winn-Dixie shareholders.
“We are very excited about the merger of Bi-Lo and Winn-Dixie,” Randall Onstead, chairman of Greenville, S.C.-based Bi-Lo, said in a press release. “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. Bi-Lo and Winn-Dixie are both strong regional brands with similar heritages, compelling customer connections, and outstanding employees. Both have been an important part of the communities and families they serve, and we look forward to building upon these two iconic brands and serving loyal customers for years to come.”
Until the merger is complete, both Bi-Lo and Winn-Dixie will continue to operate as separate companies. Following completion of the merger, it is anticipated that the companies will continue to operate under the Bi-Lo and Winn-Dixie banners. The companies don’t expect any store closures as a result of the merger.