JACKSONVILLE, Fla. (AP) — Bi-Lo Holdings LLC said Tuesday that it will buy Delhaize Group’s Sweetbay, Harveys and Reid’s grocery stores chains for $265 million in cash.
The deal includes 72 Sweetbay and Harveys sites each, and 11 Reid’s stores. As part of the transaction, Bi-Lo Holdings will also acquire leases for 10 prior Sweetbay locations. Delhaize will retain Sweetbay’s distribution center.
The 165 stores included in the transaction generated revenue of approximately $1.8 billion in 2012.
Delhaize, which is based in Belgium, said the sale is a significant move toward simplifying its business and give it more financial flexibility to pursue other strategic priorities.
The deal will also help Bi-Lo, which owns the Bi-Lo and Winn-Dixie grocery chains, reach more customers. The privately held Jacksonville, Fla., company has 686 Bi-Lo and Winn-Dixie stores in the Southeast.
The transaction is subject to antitrust approval and is expected to close in the fourth quarter of 2013.
