Bi-Lo Holdings announced yesterday that it will acquire all of the stores in the Sweetbay, Reid's and Harveys supermarket chains from the Delhaize Group for $265 million.
Subject to regulatory review and approval, Bi-Lo Holdings, parent company of the BI-LO and Winn-Dixie grocery store chains, will acquire 165 stores in total. The acquisition includes 72 Sweetbay stores, 72 Harveys stores and 11 Reid's stores, along with leases for ten sites previously held by Sweetbay.
Commenting on the acquisition, Randall Onstead, chief executive and president at Bi-Lo Holdings said, "We are pleased to announce this transaction, which will build on the strength of our BI-LO and Winn-Dixie stores and allow us to extend our great products at great value to a broader customer base. Sweetbay, Harveys and Reid's are well-recognized and trusted businesses that share our passion for exceptional service. We look forward to welcoming the outstanding associates of all three chains to the BI-LO Winn-Dixie family."
“We would like to thank the associates of Sweetbay, Harveys, and Reid's for their ongoing commitment and accomplishments throughout the years,” Delhaize Group CEO Pierre-Olivier Beckers said. “We believe this transaction represents a significant move towards simplifying our business and will allow for even greater focus at Delhaize America. The transaction will further increase the financial flexibility required to execute our strategic priorities.”
Bi-Lo Holdings expects the transaction to be closed at the end of 2013 and the deal is subject to the satisfaction of the usual closing conditions. Up until completion of the deal, Sweetbay, Harveys and Reid's will continue to trade independently.
Bi-Lo Holdings is the ninth-largest traditional supermarket chain in America, employing close to 60,000 members of staff across 686 stores in the south-east states of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.
