US retailer Bi-Lo is to hold on to the Harvey’s banner but discard Sweetbay and Reid’s once it closes its deal to buy the chains from Delhaize Group.
Bi-Lo struck a deal to acquire the stores from Belgium-based Delhaize for US$265m in May and, ahead of the agreement being finalised, the company set out its plans for the chains.
Reid’s stores will be converted to the Bi-Lo banner. Sweetbay outlets will switch to Bi-Lo’s Winn-Dixie chain. The retailer said the “majority” of the Harveys stores will keep the name, although “a few” will become Winn-Dixies or Bi-Los.
The deal is expected to close in the first quarter of next year.
Two weeks ago, the owner of Bi-Lo and Winn-Dixie said it would list the combined business as Southeastern Grocers.
Investment vehicle Lone Star Funds is looking to raise as much as US$500m, according to a prospectus filed with the US Securities and Exchange Commission. That estimate has been used to calculate fees and could change.
Lone Star owns 100% of the business but it is unclear how big its stake will be after the IPO. However, according to the prospectus, the retailer expects to be a “controlled company” – indicating Lone Star expects to remain a major shareholder.