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Delhaize Group said Tuesday it would sell its Sweetbay (72 stores), Harveys (72 stores), and Reid's (11 stores) chain of stores to Bi-Lo Holdings LLC for $265 million in cash.
As part of the transaction, Bi-Lo Holdings also would acquire leases for 10 prior Sweetbay locations. Delhaize will retain Sweetbay's distribution center. In 2012, the 165 stores included in the transaction generated revenues of approximately $1.8 billion.
“We would like to thank the associates of Sweetbay, Harveys, and Reid's for their ongoing commitment and accomplishments throughout the years,” Delhaize Group CEO Pierre-Olivier Beckers said in a statement. “We believe this transaction represents a significant move towards simplifying our business and will allow for even greater focus at Delhaize America. The transaction will further increase the financial flexibility required to execute our strategic priorities.”
The transaction is expected to close in the fourth quarter and is subject to regulatory approval as well as customary closing conditions and working capital adjustments. Lazard acted as financial advisor to Delhaize Group for this transaction.