Aldi plans to expand its U.S. footprint with the purchase of two grocery chains belonging to Southeastern Grocers Inc.
Under an agreement between Aldi and Southeastern Grocers, Aldi will become the new owner of Winn-Dixie and Harveys Supermarket, a pair of grocery chains with about 400 stores in several southeastern states. The two firms announced the acquisition Wednesday morning.
Aldi will "evaluate which locations will convert to the Aldi format," Aldi U.S. CEO Jason Hart said in a statement. It will keep others operating under the Winn-Dixie and Harveys Supermarket model, he said.
Three-quarters of the stores subject to the acquisition are located in Florida, and the rest are located in Alabama, Georgia, Louisiana and Mississippi, according to Southeastern Grocers.
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Its purchase "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," Hart said.
Aldi and Southeastern Grocers aim to complete the transaction by the middle of 2024, according to their press releases. Closure of the deal, they said, would be contingent upon receipt of regulatory approval and other typical closing conditions.
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The deal will involve Aldi paying Southeastern Grocers cash for the outstanding capital stock belonging to the latter, said Southeastern Grocers, which is offloading its Fresco y Más brand to a different company in a separate transaction.
For the Winn-Dixie and Harveys Supermarkets deal, Aldi had Deutsche Bank for financial advisement, Kayne Law Group for transaction counsel and Baker & McKenzie LLP for real estate counsel, according to the company.
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Aldi, which is German, runs about 2,300 locations in America. Its first U.S. store, a location in Iowa, opened in the 1970s, its website said.
