German discount grocer Aldi to acquire southeastern grocers, including Winn-Dixie
Aug. 16 (UPI) -- Aldi, one of two discount grocers by the same name founded in Germany, announced Wednesday it would acquire the supermarket chains Winn-Dixie and Harveys Supermarket from Southeastern Grocers.
The supermarket chains, which are popular in the southeastern United States, will be acquired by the company Aldi Süd, the company said in a news release. The merger would add around 400 Winn-Dixie and Harveys Supermarket locations across Alabama, Florida, Georgia, Louisiana and Mississippi.
The deal is expected to close in the first half of 2024 after regulatory approval. Aldi also plans to open 20 new locations in the area by the end of the year.
Aldi refers to two companies derived from the original Aldi founded by Karl and Theo Albrecht in 1946. The brothers split the business in two in the 1960s after a dispute about whether the chain should sell cigarettes.
Aldi Süd and Aldi Nord -- or Aldi South and Aldi North respectively -- have been owned and operated separately in the decades since the split, but continue to do contractual business with each other.
The acquisition of Winn-Dixie and Harveys Supermarket will largely increase the presence of Aldi Süd in the United States to better take on its brotherly rival, Aldi Nord -- which owns the popular grocer Trader Joe's.
The Aldi branded stores in the United States are owned and operated by Aldi Süd.
"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," said Jason Hart, the CEO of Aldi's division in the United States.
"The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills. 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."
Hart added that most of the Winn-Dixie and Harveys Supermarket stores will continue to operate under those brand names but some locations will be converted to the Aldi format.
Meanwhile, Southeastern Grocers -- which also operates Fresco y Mas stores -- plans to sell the 28 stores and four pharmacies under that banner to Fresco Retail Group in the first quarter of 2024, the company said in a news release.
That merger is also expected to be completed in the first half of 2024.
