After completing its acquisition of Winn-Dixie Stores Inc. on Friday, Bi-Lo LLC announced this morning that the headquarters of the merged company will be in Jacksonville.
Bi-Lo is currently based in Greenville, S.C., but it said in a news release early this morning that Jacksonville is centrally located within the eight-state operating area of the merged company, which is called Bi-Lo Holding. The company is owned by Texas-based investment firm Lone Star Funds.
Winn-Dixie operates 480 supermarkets in Florida, Georgia, Alabama, Mississippi and Louisiana, while Bi-Lo has 206 stores in South Carolina, North Carolina, Georgia and Tennessee.
The company plans to continue operating those supermarkets under their respective Winn-Dixie and Bi-Lo banners.
“While both companies enjoy a strong heritage of support from their local communities, the Jacksonville-based infrastructure is best positioned to host the combined Bi-Lo and Winn-Dixie support center, corporate office and distribution facilities. At the same time, the company plans to maintain a strong regional presence in Greenville both in regard to distribution and local store support needs,” the company said.
With Bi-Lo moving its headquarters into Winn-Dixie’s Westside offices, Jacksonville will continue to be home to four Fortune 500 companies.
The other three are CSX Corp., Fidelity National Financial Inc. and Fidelity National Information Services Inc.
Bi-Lo Chairman Randall Onstead was previously named president and CEO of Bi-Lo Holding, while Winn-Dixie CEO Peter Lynch is leaving the company.
“With the merger of Bi-Lo and Winn-Dixie now complete, we can begin delivering on this exciting combination for the benefit of our customers, team members and communities,” Onstead said in the news release.
“Together, we are a stronger company that will be focused on meeting and exceeding our customers’ expectations by offering even greater value with the service and shopping experience that they have come to expect,” Onstead said.
Lynch, who is staying on for 30 days as an adviser, said on Friday that Bi-Lo officials will be in Jacksonville to meet with Winn-Dixie employees today to discuss details about the merged operations.
Lynch said he expects a smooth transition.
“I don’t expect any bumps in the road,” he said. “I feel good about the handoff to the new owners.”
Bi-Lo bought Winn-Dixie for $9.50 a share in cash, a total of about $560 million.
Winn-Dixie shareholders approved the deal Friday at a special meeting at the company’s headquarters that lasted only about 15 minutes.
The merger was approved overwhelmingly with about 39.8 million shares voted in favor of the deal and only 951,000 against it, with 155,000 abstaining. No shareholders spoke up when given the opportunity before the vote
“You never know how these meetings are going to go,” Lynch said. But he said he thought shareholders have been well-informed about the merger and understood the deal before the vote.
Lynch said he has always made an effort to keep shareholders and employees informed about company developments since he joined Winn-Dixie in late 2004, shortly before Winn-Dixie went through a Chapter 11 bankruptcy restructuring.
“I think I’ve been transparent since I’ve been here,” he said.
Lynch said he has no future plans as he leaves the company.
“All my options are open,” he said.
Lynch has an additional home in Cape Cod, Mass., but said he’s not leaving Jacksonville, where he can spend time boating and playing golf.
“We love Jacksonville, so we plan on keeping our home here,” he said.
Lynch said what he’ll miss most about leaving Winn-Dixie is the people who he was worked with, not only within the company but also in the community.
“I’ve always said it’s about the people,” he said.
He believes that he’s leaving the business in good hands.
“I feel very good about what we’ve accomplished here with the team,” Lynch said.
“I’m walking away today feeling very proud of what we’ve done at Winn-Dixie.”
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