Make us your home page
Instagram

Winn-Dixie Stores sold for about $560 million to Bi-Lo

Bi-Lo LLC, the owner of more than 200 supermarkets, agreed to buy Winn-Dixie Stores Inc. for about $560 million to expand in its home market of the South.

The cash offer of $9.50 a share is 75 percent higher than Winn-Dixie's closing price on Dec. 16, the companies said Monday in a statement. The retailers said they don't expect to close any stores as part of the transaction.

The deal is the fourth-largest acquisition of a food retailer in the United States in the past five years, according to data compiled by Bloomberg. The takeover creates a company with about 690 grocery stores in the Southeast and 63,000 workers.

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

Winn-Dixie rose 70 percent to $9.23 at 9:51 a.m. in New York. The Jacksonville-based company's shares had fallen 24 percent this year beforeMonday.

Bi-Lo, based in Greenville, S.C., agreed to pay a premium of more than 74 percent the average 20-day trading before the announcement, according to data compiled by Bloomberg. The buyers of more than 60 U.S. companies in the food-retail industry paid an average premium of 36 percent in the past five years, the data show.

Lone Star Funds, a Dallas-based private-equity firm, agreed to acquire Bi-Lo from Royal Ahold NV (AH), a Netherlands-based supermarket operator, in 2005. Bi-Lo filed for bankruptcy in South Carolina in March 2009 with a maturity looming on a $260 million term loan. It emerged from Chapter 11 reorganization in May 2010.

Winn-Dixie's board has approved the transaction and recommends shareholders vote in its favor. The combined company's executive team and headquarters location will be decided as the takeover moves closer to completion, according to the statement. The deal is expected to close in the next 60 to 120 days.

Winn-Dixie Stores sold for about $560 million to Bi-Lo 12/19/11 [Last modified: Monday, December 19, 2011 1:51pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. SeaWorld shares drop Monday to 2017 low after disclosure of federal subpoena

    Tourism

    The Orlando parent company of SeaWorld and Busch Gardens theme parks saw its stock drop 3.5 percent Monday to $15.10, its lowest price of this year.

    Killer whales perform at Shamu Stadium at SeaWorld in Orlando in 2011, before public pressure was placed on the theme park company to curtail its orca shows.SeaWorld has since announced an end to the traditional killer whale entertainment  at its theme parks. [AP Photo/Phelan M. Ebenhack]
  2. Rick Scott appoints longtime ally Jimmy Patronis as Florida CFO

    State Roundup
    Rick Scott appoints Jimmy Patronis (background) as CFO. [STEVE BOUSQUET | Tampa Bay Times]
  3. Local gas prices plummet as Fourth of July holiday travel approaches

    Tourism

    TAMPA — Local gas prices are enjoying an unseasonal dip around the $2 mark just in time for the hectic Fourth of July holiday travel weekend.

    The price of regular unleaded gasoline has dropped to $1.99 at a Rally station on Pasadena Ave. South and Gulfport Boulevard South, South Pasadena.
[SCOTT KEELER   |   Times]

  4. Air bag recalls, lawsuits lead Takata to file for bankruptcy

    Autos

    Shattered by recall costs and lawsuits, Japanese air bag maker Takata Corp. filed Monday for bankruptcy protection in Tokyo and the U.S., saying it was the only way it could keep on supplying replacements for faulty air bag inflators linked to the deaths of at least 16 people.

    Japanese air bag maker Takata Corp. CEO Shigehisa Takada bows during a press conference in Tokyo on Monday. Takata has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of defective air bag inflators.
[(AP Photo/Shizuo Kambayashi]
  5. Airbag maker Takata bankruptcy filing expected in Japan, U.S.

    Corporate

    DETROIT — Japanese airbag maker Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of faulty air bag inflators.