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
Yohana Valdez
LOS ANGELES
,
February 5, 2012
(Industry Intelligence)
–
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.
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.