Winn Dixie goes private with purchase by Bi-Lo

12/20/2011 01:54:00 PM
Tom Karst

Winn-Dixie has agreed to go private in a $560 million deal with Mauldin, S.C.-based Bi-Lo LLC.

The cash buyout would create the ninth largest U.S. chain, analysts said. The combined company will account for about 690 stores and more than 60,000 employees in eight states in the southeastern U.S., according to a Reuters report.

Jacksonville, Fla.-based Winn-Dixie Stores Inc. said Dec. 19 that the company entered into a merger agreement with Bi Lo Holding, LLC, a majority-owned subsidiary of Lone Star Funds.

The deal will convert existing shares of Winn-Dixie common stock — trading at less than $6 per share Dec. 16 — to a value of $9.50 per share.

Shareholders will vote on the merger, but a date of the vote had not been scheduled. Winn-Dixie said the merger and the merger agreement were approved unanimously by the company’s full board.

Dick Spezzano, president of Monrovia, Calif.-based Spezzano Consulting Inc., said Winn-Dixie went through significant downsizing when it shut down stores and distribution centers in recent years. The company said that during the 12 weeks ending Sept. 22 of last year, it shut down 29 underperforming stores.

However, Spezzano said the chain has since stabilized and new market opportunities associated with the Bi-Lo merger could build sales. Winn-Dixie officials said there will be no store closures associated with the merger. Bi-Lo emerged from bankruptcy last May, while Winn-Dixie was under bankruptcy protection in 2005 and 2006.



Comments (2) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

Workacholic    
Florida  |  December, 23, 2011 at 08:15 PM

Hope this works out for all parties involed. There are alot of produce veterens that work at WD that offer alot to the industry. Hopefully they can keep it going. Merry Christmas folks and vote Newt 2012

Cathy Ortego    
Louisiana  |  January, 07, 2012 at 05:38 PM

I am a current employee of Winn-Dixie and I want to share with everyone that it is a great place to work....I love my managers and co-workers!!

Feedback Form
Leads to Insight