Jacksonville-based Winn-Dixie Stores Inc. announced this morning that it has agreed to merge into BI-LO LLC.
Greenville, S.C.-based BI-LO will pay $9.50 in cash per share to acquire Winn-Dixie, a premium of 75 percent over Friday's closing stock price.
The two companies combined operate about 690 supermarkets in eight states and have 63,000 employees. The companies said they expect the stores to continue operating under the Winn-Dixie and BI-LO banners after the merger is complete.
They also said that the executive team and headquarters location will be decided as they move closer to finalizing the deal. But they expect to maintain a presence in both Jacksonville and Greenville.
"This transaction with BI-LO provides Winn-Dixie shareholders with a significant cash premium for their shares. We believe this transaction is in the best interests of our shareholders," Winn-Dixie CEO Peter Lynch said in a news release.
"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 the neighborhoods that Winn-Dixie serves," he said.
"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 the same news release.
"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," he said.
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