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.