Food City will purchase 29 Bi-Lo Supermarkets in the Chattanooga market.
The purchase includes eight stores in Georgia and 21 pharmacies.
"We are extremely excited to have this opportunity to expand our operation into the Chattanooga and north Georgia market, as part of our strategic growth plan," said Steven C. Smith, Food City president and chief executive officer. "We very much look forward to joining their retail community and serving the region."
The company plans to invest over $40 million in improvements to the locations during the first year.
Plans have not been finalized, but Food City anticipates revamping the units and hiring the vast majority of Bi-Lo's nearly 2,000 store associates.
Food City is headquartered in Abingdon, Virginia, and currently operates 104 retail supermarkets in Southeast Kentucky, Southwest Virginia and Northeast Tennessee. The company traces its roots to 1955, when founder Jack Smith opened his first store in Grundy, Virginia.
Affected grocery stores in Tennessee
7804 East Brainerd Road, Chattanooga
6951 Lee Highway, Chattanooga
1600 East 23rd Street, Chattanooga
4510 Highway 58, Chattanooga
703 Signal Mountain Road, Chattanooga
3801 Tennessee Avenue, Chattanooga
3600 Hixson Pike, Chattanooga
4011 Brainerd Road, Chattanooga
255 Ocoee Crossing North, Cleveland
2310 McGrady Drive, Cleveland
420 Market Street, Dayton
6723 Ringgold Road, East Ridge
3715 Ringgold Road, East Ridge
841 U.S. 411 North, Etowah
8634 Highway 58, Harrison
5604 Hixson Pike, Hixson
8530 Hixson Pike, Hixson
1667 Ooltewah-Ringgold, Ooltewah
9213 Lee Highway, Ooltewah
3901 Dayton Boulevard, Red Bank
10161 Old Dayton Pike, Soddy Daisy
Affected grocery stores in Georgia
342 Blue Ridge Street, Blairsville
502 G.I. Maddox Parkway, Chatsworth
1287 N. Glenwood Avenue, Dalton
531 Battlefield Parkway, Fort Oglethorpe
311 North Main Street, LaFayette
319 Chickamauga Avenue, Rossville
820 Mission Ridge Road, Rossville
112 Crimson Drive, Trenton