Winn-Dixie's sale to Bi-Lo the culmination of nearly a year of bids that went unaccepted; Winn-Dixie decided to sell when projections showed the company remaining unprofitable for one to three more years
February 5, 2012
– After nearly a year of making bids that went unaccepted, Jacksonville-based Bi-Lo supermarket chain last month signed a deal to buy Jacksonville-based Winn-Dixie Stores Inc. at US$9.50 a share, Tampa Bay Times reported Jan. 31.
At one point, the offers reached $10.50 a share, however talks halted last November when the company’s stock priced dropped to $6.39. Winn-Dixie’s board decided to sell when projections showed the company remaining unprofitable for one to three more years.
Greenville, South Carolina-based Bi-Lo will continue to operate Winn-Dixie’s 484 southeastern states under a separate brand after the sale closes March 31. The sale is pending approval by Winn-Dixie shareholders.
Winn Dixie CEO Peter Lynch will leave with $8 million in stock and options and could make another $1.5 million serving as a post-sale consultant.
The primary source of this article is Tampa Bay Times, Tampa, Florida, Jan. 31, 2011.