German supermarket chain Aldi announced Wednesday that it is acquiring hundreds of Winn-Dixie and Harveys Supermarkets in the southeastern United States.
Aldi said the deal includes about 400 grocery stores in Alabama, Florida, Georgia, Louisiana and Mississippi. Some locations will be converted into Aldi stores, while others will continue to operate under their existing brands.
Aldi, a discount retailer, opened its first stores in the United States in 1976. It has accelerated its expansion in the past two decades and now has more than 2,000 stores nationwide.
Aldi USA CEO Jason Hart, he said in a statement that the company hopes to continue to grow in the US and that it aims to add 120 new stores in the country this year.
Aldi is known for its discount prices, special goods and the sparse design of its stores, which are smaller than most supermarkets.
“Like Aldi, Winn-Dixie and Harveys Supermarket have a long history and many loyal customers in the Southeast and we look forward to serving them in the years to come,” said Mr. Hart.
If the transaction is approved by regulators, it is expected to complete in the first half of 2024. Aldi did not disclose the financial details of the acquisition.
Winn-Dixie and Harveys Supermarket is owned by Southeastern Grocers, which has seen turmoil in recent years.
Southeast Grocery I applied for Chapter 11 bankruptcy in 2018 and closed 94 stores. in 2021The company proposed, then withdrew, an initial public offering.
Southeast Grocery said in the current situation It was selling the grocery store chains to Aldi as part of a broader divestment strategy.
In a separate deal, Southeastern Grocers is selling 28 Fresco y Más grocery stores and four Fresco y Más pharmacies to an investment group, according to the statement. Fresco y Más stores will not change operations.
The Aldi deal coincides with a proposed merger by the nation’s two largest grocery store chains, Kroger and Albertsons.
The two companies proposed a merger in October 2022, but it was criticized by consumer advocates, independent grocery chains and politicians who said it would limit shoppers’ options for buying groceries.
On Wednesday, seven foreign ministers said they opposed the merger because it would give the companies too much control over the food retail market. in a letter Lina Khan, chairwoman of the Federal Trade Commission, was urged by officials to “stop this corporate consolidation that is draining Americans of their hard-earned wages and livelihoods.”
The letter was signed by the secretaries of state of Arizona, Colorado, Maine, Minnesota, New Mexico, Rhode Island and Vermont.