Aldi buying Jacksonville-based Winn-Dixie, Harveys Supermarkets

Nearly a century after W.M. Davis and his sons opened a grocery store in Miami and 84 years after moving its headquarters to Jacksonville, Winn-Dixie is being acquired by Aldi.

In an announcement Wednesday morning, the German supermarket chain said that it would acquire Winn-Dixie and Harveys Supermarkets from Jacksonville-based Southeastern Grocers in a move to expand the Batavia, Illinois-based company’s presence in the Southeast.

The deal includes nearly 400 Winn-Dixie and Harveys Supermarket stores across Alabama, Florida, Georgia, Louisiana and Mississippi, Aldi said.

"The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills,” said Jason Hart, Aldi’s CEO. “The transaction 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."

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Southeastern Grocers, then known as Bi-Lo, acquired Winn-Dixie in 2011 for $560 million.

The sale comes nine months after The Wall Street Journal reported that Southeastern Grocers was exploring a sale after the company canceled a plan to go public in 2021.

"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 of 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."

According to Southeastern Grocers, Aldi will acquire all outstanding company stock in an all-cash transaction. The value of the deal was not immediately available. The transaction is expected to close in the first half of 2024, subject to regulatory approval and other customary closing conditions, the companies said. Until that time, Southeastern will continue to operate the stores under the Winn-Dixie and Harveys banners.

Southeastern, which also operates Fresco y Mas stores, plans to sell the 28 stores and four pharmacies under that banner to Fresco Retail Group, LLC in the first quarter of 2024, the company said.

According to Aldi’s Hart, some Winn-Dixie and Harveys Supermarkets stores will be converted into the Aldi format. But "for those stores we do not convert, our intention is that these continue to operate as Winn-Dixie and Harveys Supermarket stores."

"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," Hart said.

Jacksonville Mayor Donna Deegan said, "The Winn-Dixie brand has a long, rich history in Jacksonville. We look forward to the opportunity to meet with Aldi executives and make the case why they should join FIS, Dun & Bradstreet, CSX and other major corporations whose headquarters are here in Jacksonville."

JAX Chamber President and CEO Daniel Davis agreed.

"Recently we’ve seen more than our share of companies relocating headquarters to Jacksonville," he said. "We’ve got a great story to tell and we can’t wait to talk to Aldi about coming here."

Aldi first entered the Northeast Florida market in 2015 with a store at 9041 Southside Blvd. Since then, Aldi has opened several stores in the area, including eight in Jacksonville and one each in Orange Park, Middleburg, Yulee, Saint Johns and St. Augustine.

This article originally appeared on Florida Times-Union: Aldi acquiring Winn-Dixie, Harveys Supermarkets from Southeastern Grocers