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Regional grocers merge
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July 8, 1997: 12:59 p.m. ET
Jitney-Jungle will acquire Delchamps for $213.6M
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NEW YORK (CNNfn) - Jitney-Jungle Stores of America Inc. will buy all of the outstanding stock of Delchamps Inc. in a regional supermarket merger worth $213.6 million, the companies said Tuesday.
Under the terms of the deal between the two southeastern chains, Jitney-Jungle will pay $30 for each outstanding share of Delchamps stock.
"The combination of these two excellent regional supermarket chains will create a very strong competitor," said David Morrow, Delchamps' chief executive.
Delchamps has 7.12 million common shares outstanding. Jitney's offer is contingent upon two-thirds of those shares being tendered. Antitrust regulators and holders of $200 million in Jitney-Jungle bonds must approve the deal.
Michael Julian, Jitney-Jungle's chief executive, said the merger will bring together two leading chains of the south.
Delchamps, based in Mobile, Ala., operates 128 stores in Louisiana, Mississippi, Alabama and Florida. The number includes 10 liquor stores in Florida.
Jitney-Jungle has 105 supermarkets and 53 gas stations in Mississippi, Tennessee, Arkansas, Alabama, Louisiana and Florida.
Shares of Delchamps were down 2-3/8 to 29-7/8 in Nasdaq trading late Tuesday morning. 
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