Written By Matt Egan / Published December 19, 2011 / FOXBusiness
Southeastern U.S. supermarket operator Winn-Dixie (WINN: 9.26, +3.83, +70.53%) reached a $530 million deal on Monday to be sold to fellow supermarket owner BI-LO in a transaction that carries a lofty 75% premium.
Privately held BI-LO, which is based in Greenville, S.C., said once the deal closes Winn-Dixie will become a subsidiary of BI-LO, but keep its own banner. The combined company will have 690 stores in nine states scattered throughout the Southeast.
BI-LO said it will pay $9.50 in cash per share of Winn-Dixie stock, translating to a hefty 75% premium on Winn-Dixie’s Friday close of $5.43.
Founded in 1925, Winn-Dixie has about 46,000 employees and 480 retail grocery locations in Florida, Alabama, Louisiana, Georgia and Mississippi.
BI-LO, which is majority-owned by Dallas-based Lone Star Funds, 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,” BI-LO Chairman Randall Onstead said in a statement.
The deal is seen closing in the next 60 to 120 days, at which point shares of Jacksonville-based Winn-Dixie will stop trading on the Nasdaq Global Market.
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 it’s expected to maintain a presence in both Greenville and Jacksonville.
“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.
Shares of Winn-Dixie, which had been almost 25% in the red on the year, surged 71.82% to $9.35 ahead of Monday’s open.
Read Story at Fox Business: BI-LO Buys Winn-Dixie
Represents all sectors of the cosmetology industry, including schools, salons, manufacturers and distributors.
Represents Florida's grocery industry and keeps its members aware of legislative and regulatory issues and events affecting their industry.
Dedicated to providing educational and professional development resources for retail loss prevention and asset protection professionals and networking opportunities to strengthen statewide partnerships.
Represents and protects Florida's retail pharmacy industry.
Members of the Retail Beverage Council include major national retailers along with many independent retailers of all sizes.
The Florida Retail Federation Sustainability Council is comprised of Florida retailers that have identified environmental and sustainability issues as an important factor in the operation of their companies.
Represents members whose target market is primarily out-of-state tourism and in-state vacationers.
Works with the Retail Centers at both Florida State University and the University of Florida to ensure curricula properly prepares students for professional careers in the retail industry and reviews additional professional education and development programs.