Southeastern Grocers Announces Strategic Divestiture and Mergers with ALDI and Fresco Retail Group
Jacksonville, Florida – Southeastern Grocers Inc. (SEG), the parent company of Fresco y Más, Harveys Supermarket, and Winn-Dixie grocery stores, has revealed its plans for a comprehensive strategic divestiture of its businesses through definitive agreements with ALDI and Fresco Retail Group, LLC.
As part of the proposed merger agreement, ALDI is set to acquire all outstanding SEG capital stock in an all-cash transaction. This deal will encompass all grocery operations under the Winn-Dixie and Harveys Supermarket banners, which consist of around 400 stores in Alabama, Georgia, Louisiana, Mississippi, and Florida, with the majority (75%) of these stores located in the latter state. Following the completion of the transaction, ALDI will continue to operate the existing stores under the Winn-Dixie and Harveys Supermarket banners, and will also assess which locations will be converted to the ALDI format. Stores not converted will continue to operate as Winn-Dixie and Harveys Supermarket stores.
Concurrently, SEG has entered into an agreement to divest its Fresco y Más operations to Fresco Retail Group, LLC, a strategic investment group focused on the food and grocery sector. The sale of the Fresco y Más banner, including all 28 stores and four pharmacies, is expected to be finalized in the first quarter of 2024. Fresco Retail Group, LLC intends to maintain the current operations of all stores and pharmacies within the Fresco y Más banner.
Anthony Hucker, President and CEO of Southeastern Grocers, expressed optimism about the strategic shift, stating, “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.”
The merger agreement has already received approval from the majority of SEG’s outstanding shares. The transaction is anticipated to be concluded in the first half of 2024, pending regulatory approvals and standard closing conditions. SEG will continue to manage its banners and stores as usual until the transactions are finalized.
RBC Capital Markets, LLC acted as the financial advisor to SEG, with Willkie Farr & Gallagher LLP serving as transaction counsel, and Kirkland & Ellis LLP providing antitrust counsel to SEG.
For more information and updates on these developments, please visit www.segrocers.com/updates.
About Southeastern Grocers
Southeastern Grocers Inc. (SEG), the parent company of Fresco y Más, Harveys Supermarket, and Winn-Dixie, is a prominent omnichannel retailer and supermarket operator in the United States. SEG serves customers through brick-and-mortar grocery stores, liquor stores, in-store pharmacies, and offers online grocery delivery and curbside pickup services. Their well-established regional brands, including Fresco y Más, Harveys Supermarket, and Winn-Dixie, are known for their strong ties to communities, history of giving back, and commitment to providing quality and value to customers.
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking statements regarding SEG’s financial condition, prospects, and results of operations. These statements involve inherent uncertainties and risks that may cause actual results to differ materially. SEG undertakes no obligation to update or revise these forward-looking statements. Actual results may be affected by factors such as regulatory requirements, economic conditions, successful execution of strategic initiatives, competition, customer trends, disruptions to supply chains, staffing challenges, changes in operating costs, and more.
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