Southeastern Grocers Inc. (SEG), parent company of Fresco y Más, Harveys Supermarket and Winn-Dixie grocery stores, announced Wednesday, Aug. 16, that it has entered into definitive agreements with ALDI and Fresco Retail Group LLC to effectuate a comprehensive strategic divestiture of its businesses.
Under the proposed merger agreement, ALDI will acquire all outstanding SEG capital stock in an all-cash transaction, which encompasses all SEG grocery operations under the Winn-Dixie and Harveys Supermarket banners. This includes about 400 stores in Alabama, Georgia, Louisiana, Mississippi and Florida where 75% of the stores are located.
Following the completion of 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.
At the same time, SEG has agreed to divest its Fresco y Más operations. SEG anticipates that the sale of the Fresco y Más banner will conclude in the first quarter of 2024. The Fresco y Más banner, including all 28 stores and four pharmacies, will be sold to Fresco Retail Group LLC, an investment group 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 presently.
“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,” Southeastern Grocers President and CEO Anthony Hucker said. “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 upon delivering the exceptional quality, service and value that our customers and communities have come to expect from us.”
The merger agreement has been approved by the holders of a majority of SEG’s outstanding shares, and the merger is expected to close in the first half of 2024, subject to regulatory approvals and customary closing conditions.
