Jacksonville, Florida – Southeastern Grocers Inc. (SEG), the parent company of Fresco y Más, Harveys Supermarket, and Winn-Dixie grocery stores, has announced a significant step in its strategic plan. Today, SEG disclosed that it has entered into definitive agreements with ALDI and Fresco Retail Group, LLC, marking a comprehensive strategic divestiture of its businesses.
In accordance with the proposed merger agreement, ALDI is set to acquire all outstanding SEG capital stock through an all-cash transaction. This deal encompasses all SEG grocery operations operating under the Winn-Dixie and Harveys Supermarket banners. The acquisition includes approximately 400 stores situated across Alabama, Georgia, Louisiana, Mississippi, and Florida, where 75% of the stores are located. Following the finalization of the sales process, ALDI will take over the customer and community services offered by Winn-Dixie and Harveys Supermarkets through the continued operation of these banners’ existing stores. ALDI will also assess which locations will transition to the ALDI format. In cases where conversion isn’t pursued, ALDI intends to maintain these stores as Winn-Dixie and Harveys Supermarket outlets.
Simultaneously, SEG has committed to divesting its Fresco y Más operations. The sale of the Fresco y Más banner is projected to conclude in the first quarter of 2024. Fresco Retail Group, LLC, an investment group with a strategic focus on food and grocery, will acquire the Fresco y Más banner. This includes all 28 stores and four pharmacies, and the intent is to continue the operation of these stores and pharmacies under the current format.
Anthony Hucker, President, and CEO of Southeastern Grocers, expressed, “Our transformative journey has created a distinctive opportunity with esteemed partners who share our vision and mutual commitments to delivering value for their customers. We believe that these forthcoming actions will create an outstanding experience for our customers, fresh prospects for our associates, and enhanced value for our shareholders. As the sales processes unfold, we remain dedicated to providing the exceptional quality, service, and value that our customers and communities have come to expect from us.”
The merger agreement has received the approval of the majority of SEG’s outstanding shares. The anticipated timeline for the merger’s conclusion is within the first half of 2024, subject to customary closing conditions and regulatory approvals. SEG will continue operating its respective banners and stores as usual until the transactions are finalized.
SEG’s financial advisor for this endeavor is RBC Capital Markets, LLC. The transaction counsel is Willkie Farr & Gallagher LLP, while Kirkland & Ellis LLP serves as antitrust counsel for SEG. For the latest updates and additional assets for media coverage, visit www.segrocers.com/updates.
About Southeastern Grocers
Southeastern Grocers Inc. (SEG), the parent company housing Fresco y Más, Harveys Supermarket, and Winn-Dixie grocery stores, is a prominent omnichannel retailer and supermarket enterprise in the United States. It serves customers through brick-and-mortar grocery stores, liquor outlets, in-store pharmacies, and online platforms, providing convenient grocery delivery and curbside pickup across Alabama, Florida, Georgia, Louisiana, and Mississippi. With deep-rooted heritages and strong community connections, Fresco y Más, Harveys Supermarket, and Winn-Dixie are renowned regional brands committed to offering the highest quality and value to their customers. Learn more at www.frescoymas.com, www.harveyssupermarkets.com, and www.winndixie.com.
This press release includes forward-looking statements regarding SEG’s financial condition, prospects, and results. These statements are based on management’s estimates, projections, and assumptions that are inherently uncertain. Factors beyond SEG’s control, such as economic, competitive, governmental, and technological factors, could cause actual results to differ materially from these statements. SEG does not undertake to update or revise forward-looking statements contained herein. These statements may include words like “anticipate,” “intend,” “plan,” “seek,” “believe,” “estimate,” “expect,” and similar terms related to future periods. Not all forward-looking statements include these identifying words. Risks and uncertainties that could impact actual results are detailed in the press release.