The Federal Trade Commission on Tuesday gave permission to Bi-Lo Holdings to acquire Harveys and Reid’s supermarkets from the owner of Food Lion. The buyout, though, will result in the closing of a BI-LO in Aiken and a Reid’s in Orangeburg.
The deal will also result in the Harveys in Waynesboro being sold and rebranded as an IGA.
Jacksonville, Fla.-based Bi-Lo Holdings, the parent company of BI-LO and Winn-Dixie supermarkets, struck a deal with Delhaize America in May to buy 155 stores in the Sweetbay, Harveys and Reid’s chains for $265 million in cash. As part of the FTC’s consent order, Bi-Lo Holdings will divest a dozen of the stores and close a dozen others.
“Given the number of stores we are acquiring, we anticipated that we may be asked by the FTC to divest some stores to close the deal. In addition, with the close proximity of some of the Bi-Lo Holdings and Delhaize stores, we also knew that we would have to close a few stores as part of the acquisition,” said R. Randall Onstead, president and CEO of Bi-Lo Holdings.
The BI-LO at 1149 York St. in Aiken will close on July 12. The Reid’s in Orangeburg will close on May 31.
“We appreciate the many contributions our associates in these stores have made, and we will ensure they are treated respectfully and have the opportunity to pursue other open positions in nearby stores,” Onstead said.
The Harveys stores in Waynesboro and Sylvania, Ga., and the Reid’s in Batesburg, S.C., will be divested as part of the deal, sold to W. Lee Flowers and Co. and rebranded as KJ’s Market IGA. That deal will close in May.
The order is subject to final approval by the FTC after the close of a 30-day comment period. The two companies anticipate the acquisition will begin on March 22 and be complete on May 31.