Make us your home page
Instagram

Winn-Dixie bought by South Carolina grocer Bi-Lo for $560 million

GREENVILLE, S.C. — Supermarket chain Winn-Dixie is being sold in a deal valued at $560 million to Bi-Lo LLC, the companies said Monday, creating a huge grocery operator in the South.

Winn-Dixie has about 30 stores in the Tampa Bay area. There is no plan to close any stores or change the name of those stores at this time.

Bi-Lo, based in Greenville, S.C., runs 207 supermarkets in North Carolina, South Carolina, Georgia and Tennessee. Winn-Dixie runs about 480 grocery stores, including about 380 in-store pharmacies, in Florida, Alabama, Louisiana, Georgia and Mississippi. It has about 46,000 employees.

Shares of Winn-Dixie jumped 70 percent Monday, ending the day on the Nasdaq market at $9.24. The company had struggled in the past, entering into bankruptcy protection in 2005, but has been revamping operations in recent years. Winn-Dixie emerged from bankruptcy protection in 2006. In its most recent quarter, Winn-Dixie's revenues rose 3 percent, yet the company posted a loss of about $24 million.

The combined company will have about 63,000 workers in eight states in the southern United States. Winn-Dixie Stores Inc. will become a privately held subsidiary and its ticker will be removed from the Nasdaq. Bi-Lo is a private company.

Each Winn-Dixie stockholder gets $9.50 per share in cash, a 75 percent premium to the Jacksonville company's Friday closing stock price. At that price, the deal would be valued at slightly more than $530 million.

The companies said Monday that no store closings are expected and the name Winn-Dixie will remain because of its strong brand recognition in the South.

"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 Bi-Lo chairman Randall Onstead.

Winn-Dixie's board unanimously approved the deal, which is expected to close in the next 60 to 120 days. The management structure and headquarters have yet to be determined, but the companies anticipate keeping sites in both Greenville and Jacksonville.

Winn-Dixie bought by South Carolina grocer Bi-Lo for $560 million 12/19/11 [Last modified: Monday, December 19, 2011 8:50pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Busy start has Florida Hospital Center Ice dreaming big

    Tourism

    WESLEY CHAPEL — Opening day brought 600 doctors, administrators and their families from Florida Hospital. Soon after that, the facility hosted its first junior league game and a collegiate showdown. A few weeks later, 200 kids, ages 4 to 9, participated in national Learn to Play Hockey Day.

    Alex Senushkin and his grandson, Styopa Kulshyn, 3, of Lakeland, skate at the Florida Hospital Center Ice rink in Wesley Chapel.
[CHARLIE KAIJO   |   Times]

  2. Qatar Airways seeks to buy a stake in American Airlines

    Airlines

    NEW YORK — State-owned Qatar Airways is attempting to buy a 10 percent stake in American Airlines, triggering U.S. antitrust oversight of deals that size.

    In this file photo, a new Qatar Airways Airbus A350 approaches the gate at the airport in Frankfurt, Germany. Qatar Airways is attempting to buy a 10 percent stake in American Airlines, triggering U.S. antitrust oversight over deals of such size. 
[AP file photo]
  3. Who's best global airline? Qatar Airways takes No. 1 spot but Delta tops U.S. carriers

    Airlines

    The good news? Delta Airlines tops all U.S. airlines in a new Skytrax global airline passenger satisfaction survey of the world's best airlines. The bad news? At No. 32, Delta still ranks behind dozens of Middle East, Asian and some European airlines. For Tampa International Airport and the major airlines that operate …

    Southwest Airlines, the biggest carrier at Tampa International Airport, improved its customer satisfaction rating among global airlines in a recent survey.
[Times file photo]
  4. Vinoy resort will ask St. Petersburg voters to approve new parking garage (with tennis courts on top)

    Local Government

    ST. PETERSBURG — The Vinoy Renaissance St. Petersburg Resort & Golf Club is undergoing a $50 million redevelopment and part of that plan calls for building a new one-story parking garage over eight existing tennis courts.

    The Vinoy Renaissance Resort and Golf Club is undergoing a $50 million redevelopment. The Vinoy wants to build a one-story parking garage as part of that project, in place of eight existing tennis courts. The tennis courts would be moved on top of the garage, which would hold 270 parking spots. But the Vinoy needs St. Petersburg voters to approve the project in a November referendum. This is an artists' rendering of the new garage from the street. [Courtesy of Vinoy Renaissance Resort and Golf Club]
  5. House committee passes Florida-sponsored flood insurance bill

    Banking

    The House Financial Services Committee pushed through a Florida-sponsored bill intended to cut flood insurance costs. If passed, the bipartisan bill would help create a marketplace for private flood insurance.

    A House committee passed a Florida-sponsored bill meant to lower flood insurance rates.
[Times file photo]