Aldi buying 400 Winn-Dixie, Harveys Supermarket stores
Aldi will convert some stores but keep others under the Winn-Dixie, Harveys models
Stew Leonard Jr. forecasts when shoppers might see some grocery relief
Stew Leonard's President and CEO Stew Leonard Jr. discusses why consumers are still paying top dollar for food as inflation subsides on 'The Claman Countdown.'
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.
An exterior view of an Aldi grocery store in Coal Township, Pa., Aug. 12, 2022. (Paul Weaver/SOPA Images/LightRocket via Getty Images / Getty Images)
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.
PUBLIC HEALTH ALERT ISSUED FOR RAW BEEF SOLD AT ALDI, MAY CONTAIN PLASTIC
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.
A Winn Dixie supermarket Nov. 17, 2022, in Miami, Fla. (Joe Raedle/Getty Images / Getty Images)
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.
DOORDASH, ALDI EXPAND NATIONWIDE GROCERY DELIVERY TO OVER 2,100 LOCATIONS: ‘HIGHLY REQUESTED’
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.
An Aldi logo at one of its stores in Athens, Ohio, Feb. 2, 2021. (Stephen Zenner/SOPA Images/LightRocket via Getty Images / Getty Images)
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.
ALDI SUFFERS EASTER MARSHMALLOW BLUNDER: ‘WE CAN’T EVEN DEFEND THIS ONE'
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.