PINE BELT, Miss. (WDAM) - Around 400 grocery stores around the U.S. Southeast will undergo a change of command, or even branding, after a major acquisition by the ALDI supermarket company.
Southeastern Grocers Inc. (SEG) - the parent company of Fresco y Más, Harveys Supermarket and Winn-Dixie grocery stores - announced on Wednesday that their holdings would be divided between ALDI and Fresco Retail Group, LLC as part of a merger agreement. The company called the move a “comprehensive strategic divestiture” of its businesses.
Under the proposed agreement, ALDI will acquire all outstanding SEG capital stock in an all-cash transaction. This includes including all SEG operations under the Winn-Dixie and Harveys Supermarket banners, affecting around 400 stores in Alabama, Georgia, Louisiana, Mississippi and Florida.
“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 ALDI CEO Jason Hart. “The time was right to build on our growth momentum and help residents in the southeast save on their grocery bills.”
In its own announcement, ALDI focused on the company’s growth over the economic uncertainties of the past few years and the role this merger will play in ALDI’s future expansion.
“The transaction supports our long-term growth strategy across the United States, including plans to add 120 new stores nationwide this year to reach a total of more than 2,400 stores by year-end,” said Hart.
ALDI also said the company will continue to serve Winn-Dixie and Harveys Supermarkets through the banners’ existing stores once the sales process is complete. Some locations will convert to the ALDI format, and others will continue to operate as Winn-Dixie and Harveys Supermarket stores.
SEG President and CEO Anthony Hucker said the merger is an excellent opportunity for its businesses and customers.
“ALDI shares our vision to provide exceptional quality, service and value - and this unique opportunity will evolve our business to benefit our customers, associates and neighbors throughout the Southeast,” said Hucker. “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.”
SEG has also agreed to sell its Fresco y Más operations, which include 28 stores and four pharmacies, to Fresco Retail Group, LLC. The announcement said SEG anticipates that the sale will happen in the first quarter of 2024.
Fresco Retail Group, LLC, said they plan to continue current operations for all stores and pharmacies in the Fresco y Más banner.
The majority of SEG’s outstanding shareholders have already approved the merger agreement, and it is expected to close in the first half of 2024, subject to regulatory approvals and customary closing conditions. Until the transactions are complete, SEG said it will continue to operate its respective banners and stores.
For continued updates, visit http://www.segrocers.com/updates.
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