Food Lion Remodels and Expands
Salisbury, N.C., Food Lion plans to remodel its Washington, D.C.-area stores. Through its remodeling program, the company will introduce two new store banners—Bloom and Bottom Dollar—to the region. In all, Food Lion will remodel approximately 60 stores in the Washington region before the end of 2006. The geographic spread of these stores includes Fredericksburg, Manassas, Fairfax, Leesburg, Chantilly and Spotsylvania, Va.; and Gaithersburg, Laurel and Frederick, Md., and points in between. The company is conducting a market analysis to determine which of the three banners—Food Lion, Bloom and Bottom Dollar—will best meet customer needs at specific store locations. Food Lion stores have served Washington-area shoppers since the mid-1980s. Bloom is a newer store concept introduced by Food Lion LLC in 2004. There are currently five Bloom stores in the Charlotte, N.C., area. Bottom Dollar is a new discount supermarket concept introduced by Food Lion LLC in late 2005. There are three Bottom Dollar stores in the Triad region of North Carolina.
The company also plans to open nine stores in the upstate region of South Carolina by the end of 2006. The upstate represents a new market for Food Lion and its multiple banners. Construction has started or will begin soon at the nine locations.
Bain Capital to Acquire Burlington Coat Factory
Burlington, N.J., Burlington Coat Factory Warehouse Corp. agreed to be acquired by a private investment firm. The 367-store chain said it signed a definitive merger agreement to be acquired by affiliates of Bain Capital Partners, LLC in a $2.06 billion deal.
Under terms of the agreement, Bain Capital will acquire all of the outstanding shares of Burlington Coat Factory Warehouse Corporation for $45.50 per share in cash, for a total consideration of approximately $2.06 billion. “We are thrilled that a transaction with Bain Capital delivers significant value to our stockholders,” said Monroe Milstein, Burlington Coat Factory’s Chairman, President and CEO. “We are very proud of what the Company has accomplished over the past 30 years.”
“Burlington Coat Factory is a well-managed retail business with a strong consumer following, high-quality product offerings, and good growth prospects,” said Jordan Hitch, a managing cirector at Bain Capital. “We are delighted to have the opportunity to partner with the experienced management team to build on the company’s track record of success in merchandising and store operations and to continue to grow the store portfolio.”