JACKSONVILLE, Fla. — Bi-Lo Holding here on Tuesday said it has agreed to acquire the Sweetbay, Reid’s and Harveys banners from Delhaize America for $265 million in cash.
As part of the transaction, Bi-Lo will also acquire leases for 10 Sweetbay locations that closed earlier this year. Delhaize will retain Sweetbay’s distribution center. In 2012, the 165 stores included in the transaction generated revenues of approximately $1.8 billion.
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Bi-Lo Holding operates the Bi-Lo and Winn-Dixie chains in eight Southern states. Sweetbay operates 72 stores on Florida’s Gulf Coast. Harveys operates 72 stores in rural markets in southern Georgia and northern Florida. Reid’s operates 11 stores in South Carolina.
The sale is expected to close in the fourth quarter of 2013 and is subject to regulatory approval and customary closing conditions.
“We would like to thank the associates of Sweetbay, Harveys and Reid’s for their ongoing commitment and accomplishments throughout the years,” Pierre-Olivier Beckers, Delhaize’s chief executive officer, said in a statement Tuesday. “We believe this transaction represents a significant move towards simplifying our business and will allow for even greater focus at Delhaize America. The transaction will further increase the financial flexibility required to execute our strategic priorities.”
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