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JACKSONVILLE, Fla. — Bi-Lo Holdings LLC has agreed to acquire the Sweetbay, Harveys and Reid’s supermarket chains from Delhaize Group for $265 million in cash.
Bi-Lo Holdings LLC has agreed to acquire the Sweetbay, Harveys and Reid’s supermarket chains from Delhaize Group for $265 million in cash.
The transaction, which is subject to regulatory approval and the customary closing conditions, is expected to close in the fourth quarter of this year.
Under the terms of the deal Bi-Lo will acquire a total of 165 outlets, consisting of 72 Sweetbay stores and leases for 10 prior Sweetbay locations, 72 Harveys stores and 11 Reid’s stores. All are located in the southeastern United States. Delhaize will retain Sweetbay’s distribution center.
The transaction will significantly expand the footprint of Bi-Lo’s wholly owned subsidiary, BI-LO LLC, which operates 686 supermarkets under the BI-LO and Winn-Dixie banners in the states of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. If completed, the acquisition will deepen BI-LO’s penetration of Florida, Georgia and South Carolina. The Sweetbay outlets, which formerly carried the Kash n’ Karry banner, are located in central and Gulf Coast Florida, while most of the Harveys stores, which generally range in size from 18,000 to 30,000 square feet, are in smaller communities in Georgia, with some in Florida and South Carolina. The Reid’s stores are situated in South Carolina.
According to Delhaize Group, the stores involved in the transaction generated sales of about $1.8 billion in 2012.
"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," said Randall Onstead, president and chief executive officer of Bi-Lo Holdings. "Sweetbay, Harveys and Reid’s are well-organized and trusted businesses that share our passion for exceptional service."
