December 20, 2011- The Winn-Dixie supermarket chain has been sold to Bi-Lo LLC for over $530 million. The sale will create one of the largest grocery chains in the South. Winn-Dixie stores are doubled the number of Bi-Lo. After the announcement was made on Monday, the stock for Winn-Dixie jumped by more than 70%. The company has had its share of struggles of recent. In 2005, the company declared bankruptcy but in recent years has been overhauling its operations.
Between the two chains, there will be close to 690 stores and more than 63,000 employees spread out over eight states in the south. Bi-Lo is a privately held company and Winn-Dixie will have its ticker removed from NASDAQ as it will become a subsidiary of Bi-Lo and will be privately held.
All stockholders of Winn-Dixie will receive $9.50 per share. That price is a 75% premium over what the stock closed last Friday on NASDAQ. With that price, the deal is worth over $530 million. Greenville, South Carolina based Bi-Lo has 207 stores in South Carolina, North Carolina, Tennessee and Georgia.
Winn-Dixie has 480 stores of which 380 have in-store pharmacies. Its stores are located in Alabama, Florida, Louisiana, Mississippi and Georgia and have 46,000 workers. There are no planned store closings and the Winn-Dixie brand will remain due to its strong recognition throughout the south.