Southeastern Grocers to Sell its grocery chains to ALDI and Fresco Retail Group

Southeastern Grocers (SEG), the parent company of Fresco y Más, Harveys Supermarket, and Winn-Dixie grocery stores, announced it has entered into definitive agreements with ALDI and Fresco Retail Group, LLC to sell its supermarket chains.

Under the proposed merger agreement, ALDI will acquire all outstanding SEG capital stock in an all-cash transaction, encompassing all SEG grocery operations under the Winn-Dixie and Harveys Supermarket banners.

This includes approximately 400 stores in Alabama, Georgia, Louisiana, Mississippi, and Florida, where 75% of the stores are located.

“Like ALDI, Winn-Dixie and Harveys Supermarket have long histories and many loyal customers in the Southeast, and we look forward to serving them in the years to come,” said Jason Hart, CEO of ALDI.

“The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills. The transaction supports our long-term growth strategy across the United States, including plans to add 120 new stores nationwide this year to reach more than 2,400 stores by year-end,” Hart emphasized.

Related Article: ALDI Continues its Expansion Adding 120 New Stores in 2023

After completing the sales process, ALDI will serve the customers and communities of Winn-Dixie and Harveys Supermarkets through the continued operation of the banners’ existing stores.

The retailer will also evaluate which locations will convert to the ALDI format. For those stores that are not converted, ALDI intends for them to continue to operate as Winn-Dixie and Harveys Supermarket stores.

ALDI established its presence in the Southeast in the mid-1990s and has since invested $2.5 billion in the region.

Most recently, ALDI deepened its roots in the region. The company opened its 26th regional headquarters and distribution center in Loxley, Alabama, to help support new stores, with plans to open 20 new ALDI locations in the area by the end of the year.

Concurrently, Southeastern Grocers has agreed to divest its Fresco y Más operations.

SEG expects the sale of the Fresco y Más banner to be completed in Q1 2024.

The Fresco y Más banner, including all 28 stores and four pharmacies, will be sold to Fresco Retail Group, LLC, an investment group strategically focused on food and grocery.

Fresco Retail Group, LLC plans for all stores and pharmacies in the Fresco y Más banner to continue operating as they are present.

Anthony Hucker, President and CEO of Southeastern Grocers, said, “Our successful transformational journey has created a unique opportunity with leading partners who share our vision and common commitments to creating value for their customers. We believe these next steps will fuel a phenomenal experience for our customers, new opportunities for our associates, and increased value for our shareholders. As the sales processes proceed, we’ll stay acutely focused on delivering the exceptional quality, service, and value that our customers and communities have come to expect from us.”

The holders have approved the merger agreement of a majority of SEG’s outstanding shares, and the merger with ALDI is expected to close in the first half of 2024, subject to regulatory approvals and customary closing conditions.

SEG will continue operating its respective banners and stores in the ordinary course of business until the transactions are completed.