The buyer of nearly two dozen Piggly Wiggly supermarkets in South Carolina and Georgia has divulged a key detail about the deal: the price.
Bi-Lo is forking over about $35 million in cash for 21 “operating” stores in the neighboring states, according to a federal document.
Southeastern Grocers Inc. disclosed the figure in the filing with the Securities and Exchange Commission on Thursday.
Charleston-based Piggly Wiggly Carolina Co. Inc. announced this month it’s selling 29 of the roughly 100 stores it owns or does business with to Bi-Lo and Harris Teeter. It cited rampant consolidation and competition as the key reasons.
Of those, Bi-Lo is picking up 22 locations that employ about 1,200 workers. The chain did not identify which store is not classified as “operating” on Thursday.
Piggly Wiggly said it “is not commenting on any terms of the agreement or the involved stores.”
Jacksonville, Fla.-based Southeastern Grocers is the newly formed parent company of Bi-Lo and Winn Dixie. It filed papers Thursday as part of its plan to sell stock in an initial public offering that’s expected to raise up to $500 million.
The company reported the Piggly Wiggly purchase price in one of the IPO documents. It said it plans to finalize the deal in the fourth quarter.
Bi-Lo, which already is big player in Charleston’s crowded supermarket scene, has said it will rebrand the acquired stores under its name. The sale includes four Piggly Wiggly locations within the tri-county area.
The $35 million sales figure works out to about $1.66 million per supermarket. That’s slightly less than the $1.7 million Bi-Lo is paying on average for the 155 stores it’s buying from Food Lion’s parent, Delhaize Group.
Both deals “will significantly expand the number of operating stores in our footprint.” Southeastern Grocers said.
Contact John McDermott at 937-5572