Aldi, the popular discount grocer said it plans to buy 400 Harveys and Winn-Dixie supermarkets across the South. Southeastern Grocers, the current owner of the stores, made the announcement in a release on August 16, 2023.
Details of the deal
The Jacksonville, Florida-based company said under a proposed merger agreement, Aldi will acquire all outstanding capital stock in the all-cash deal. This is Southeastern Grocers full portfolio of Harveys and Winn-Dixie store brands, with approximately 400 locations across Alabama, Georgia, Louisiana, Mississippi and Florida.
After the sale is complete, Aldi will operate most of the stores under their current brands. But they will consider some locations for converting into their Aldi store format, the release said. Neither of the companies shared how much the deal was worth.
Aldi is one of the fastest-growing grocers in the US, and the acquisition puts the company in to better position in its goal to add 120 new stores by the end of 2023. That would bring the company’s US footprint to 2,400 locations. This aligns with the company’s statement that they are doubling-down on expansion plans.
In South Georgia, Aldi operates two stores – one in Albany and one in Valdosta. Winn-Dixie has South Georgia locations in Bainbridge and Valdosta, and Harveys has South Georgia locations in Americus, Cordele, and Fitzgerald.
Company leadership weighs in
The CEOs of both companies released these statements:
“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, ALDI. “The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills.”
“This merger agreement is a testament to our successful transformational journey and the tireless work of our dedicated associates who serve our communities,” said Anthony Hucker, President and CEO, Southeastern Grocers. “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.”
As a separate part of the deal, Southeastern Grocers is selling all of its Fresco y Más operations to Fresco Retail Group, LLC, an investment group strategically focused on food and grocery. Fresco Retail says it plans for all stores and pharmacies in the Fresco y Más banner to continue operating as they are presently.
Subject to regulation and approvals, the merger is expected to close in the first half of 2024.
Aldi is one of America’s fastest-growing retailers. Founded in Germany, the company opened its first store in 1961. It’s U.S. headquarters are located in Illinois. Aldi boasts more than 2,000 stores across 36 states.
Featured image courtesy of Aldi.
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