Winn-Dixie to Merge With Bi-Lo Grocery Chain

Struggling Jacksonville-based announced a deal last week to merge with South Carolina's Bi-Lo, in a $560 million deal that adds 690 stores and 63,000 employees to Bi-Lo's offerings.

Winn-Dixie has a store in Dunedin.

Bi-Lo, which is seeking a presence in Florida, says it will keep the Winn-Dixie name and has no plans to close its Florida stores.

Prior to the merger, Winn-Dixie had struggled with competition from discount chains, including Walmart. It closed a store on North Tamiami Trail in 2010. The grocer also pulled out of South Carolina and four other southern states in 2005, as it grappled with increased competition in the grocery business.

The merger greatly adds to Bi-Lo's footprint. Winn-Dixie, even with its struggles in recent years, has held a major presence in Florida for nearly 80 years. That's a market in which Bi-Lo had had no stores.

“With no overlap in our markets, the combined company will have a perfect geographic fit that will create a stronger platform from which to provide our customers great products at a great value, while continuing to offer exceptional service," saidRandall Onstead, Chairman of Bi-Lo. 

Bi-Lo and Winn‐Dixie are both strong regional brands with similar heritages, compelling customer connections, and outstanding employees."

Bi-Lo has struggled, too, in recent years. It exited bankruptcy in 2010.

Under the terms of the agreement, Bi‐Lo will acquire all of the outstanding shares of Winn‐Dixie stock in the merger, according to a Bi-Lo news release.

Winn‐Dixie shareholders will receive $9.50 in cash per share of Winn‐Dixie common stock, representing a premium of approximately 75 percent over the closing price of Winn‐Dixie common stock on Dec. 23.