BI-LO, WINN-DIXIE TO MERGE

by admin

GREENVILLE, S.C., AND JACKSONVILLE, FLA. — BI-LO and Winn-Dixie Stores (NASDAQ: WINN) have plans to merge to create an organization of approximately 690 grocery stores in eight states in the Southeast.

“We are very excited about the merger of BI-LO and Winn-Dixie,” said Randall Onstead, chairman of Greenville, S.C.-based BI-LO, in a statement. “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 currently has 207 stores in North Carolina, South Carolina, Georgia and Tennessee, and Jacksonville-based Winn-Dixie has 480 stores in Florida, Alabama, Louisiana, Georgia and Mississippi. The stores will continue to operate under their current banners.

Under the terms of the agreement, BI-LO will acquire all outstanding shares of Winn-Dixie stock in the merger, valued at $560 million. Shareholders will receive $9.50 in cash per share of Winn-Dixie common stock, a premium of approximately 75 percent more than the closing price of Winn-Dixie common stock on Dec. 16, which was $5.43 a share, down from $6.92 a year ago.

Upon completion of the merger, Winn-Dixie will become a privately held, wholly owned subsidiary of BI-LO and stop trading on the Nasdaq.

“This transaction with BI-LO provides Winn-Dixie shareholders with a significant cash premium for their shares,” said Peter Lynch, chairmain, CEO and president of Winn-Dixie, in a statement.

“We believe this transaction is in the best interests of our shareholders,” continued Lynch. “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 neighborhoods that Winn-Dixie serves.”

The merger is expected to close in the next 60 to 120 days.

— Savannah Duncan

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