outheastern Grocers Inc. (SEG), figure enterprise of Fresco y Más, Harveys Supermarket and Winn-Dixie grocery stores, these days pronounces it has entered into definitive agreements with ALDI and Fresco Retail Group, LLC to effectuate a comprehensive strategic divestiture of its businesses.
Under the proposed merger agreement, ALDI will gather all first-rate SEG capital inventory in an all-cash transaction, which encompasses all SEG grocery operations underneath the Winn-Dixie and Harveys Supermarket banners. This consists of approximately 400 shops in Alabama, Georgia, Louisiana, Mississippi and Florida in which 75% of the stores are positioned. Following the completion of the sales process, ALDI will serve the customers and communities of Winn-Dixie and Harveys Supermarkets thru the continued operation of the banners’ present stores. The store may also examine which places will convert to the ALDI format. For those stores that aren’t converted, ALDI intends for them to retain to function as Winn-Dixie and Harveys Supermarket stores.
Concurrently, SEG has agreed to divest its Fresco y Más operations. SEG anticipates that the sale of the Fresco y Más banner will be consummated inside the first zone of 2024. The Fresco y Más banner, which include all 28 stores and four pharmacies, can be bought to Fresco Retail Group, LLC, an funding institution strategically targeted on meals and grocery. Fresco Retail Group, LLC plans for all stores and pharmacies in the Fresco y Más banner to maintain working as they’re presently.
Anthony Hucker, President and CEO of Southeastern Grocers, stated, “Our successful transformational journey has created a unique possibility with leading companions who percentage our imaginative and prescient and not unusual commitments to creating fee for their clients. We believe those subsequent steps will gas an exceptional revel in for our customers, new possibilities for our buddies and increased price for our shareholders. As the sales methods proceed, we’ll live acutely centered upon turning in the super first-class, carrier and value that our customers and groups have come to expect from us.”
The merger settlement has been accepted by way of the holders of a majority of SEG’s exceptional shares, and the merger is expected to close in the first 1/2 of 2024, situation to regulatory approvals and customary closing conditions. SEG will retain to function its respective banners and stores within the everyday route of enterprise as much as and till the transactions are finished.
RBC Capital Markets, LLC served as financial advisor to SEG. Willkie Farr & Gallagher LLP became transaction recommend and Kirkland & Ellis LLP served as antitrust suggest to SEG. For endured updates, as well as extra belongings to assist in media insurance,
About Southeastern Grocers
Southeastern Grocers Inc. (SEG), parent business enterprise and home of Fresco y Más, Harveys Supermarket and Winn-Dixie grocery stores, is an omnichannel store and grocery store business enterprise in the U.S., serving clients in brick-and-mortar grocery stores, liquor stores and in-store pharmacies as well as on-line with convenient grocery delivery and curbside pickup all through Alabama, Florida, Georgia, Louisiana and Mississippi. Fresco y Más, Harveys Supermarket and Winn-Dixie are well-known and well-reputable regional brands with deep heritages, robust community ties, proud histories of giving returned, proficient and worrying friends and a strong commitment to providing the first-rate viable first-rate and price to customers. For more information, go to www.Frescoymas.Com, www.Harveyssupermarkets.Com and www.Winndixie.Com.
Cautionary Statements Regarding Forward-Looking Information
This press release carries sure ahead-looking statements regarding SEG, consisting of, however now not limited to, its financial circumstance, prospects and its results of operations. All of those statements are based totally on estimates, projections and assumptions organized through management which can be inherently uncertain and that might not be found out as fact. These statements involve risks and uncertainties, such as, but not constrained to, financial, competitive, governmental and technological elements outdoor of SEG’s manipulate, that can cause SEG’s commercial enterprise, enterprise, approach or actual effects to differ materially. SEG undertakes no responsibility to update or revise any of the forward-searching statements contained herein, whether or not as a end result of recent information, destiny events or otherwise. Forward-looking statements may also consist of phrases along with “expect,” “intend,” “plan,” “are looking for,” “trust,” “estimate,” “expect,” and similar references to destiny intervals and different words and terms of similar meaning in connection with any discussion of the timing or nature of destiny operating or monetary performance or different occasions however now not all ahead-looking statements comprise those figuring out phrases.
There are some of risks and uncertainties that could motive our real consequences to vary materially from the ahead-looking statements contained in this press release. Important factors that would reason actual outcomes to differ materially from those inside the ahead-looking statements consist of the following: regulatory requirements; detrimental financial situations; failure to correctly execute our strategic tasks; timing of the consummation of our strategic initiates; the impact of our strategic initiatives on our enterprise; the aggressive nature of the enterprise in which we conduct our business; our inability to well timed perceive or respond to customer traits; disruptions to our product deliver or to C&S’s distribution network; our lack of ability to keep the offerings of key employees and failure to attract, teach and retain qualified body of workers; risks related to presenting pharmacy offerings at our stores; our incapability to open, relocate or remodel stores on schedule; increases or fluctuations in our running fees; increase in marketing, advertising and promotional prices and incapability to put in force powerful advertising and marketing, advertising and marketing and promotional strategies; failure to maintain our popularity and the price of our brands, along with safety of our intellectual assets; dangers related to leasing great amounts of space, which includes liability below our running leases assigned to 0.33 events; impairment expenses at the cost of our long-lived assets; changes in accounting requirements, subjective assumptions, estimates and judgements with the aid of management related to complex accounting topics; failure to hold the privateness and protection of exclusive client and commercial enterprise statistics; disruptions of or compromises to our facts generation gadget; a loss in purchaser confidence inside the safety and quality of our products; our lack of ability to hold the loyalty of our clients; unanticipated modifications inside the coverage marketplace or elements affecting self-insurance reserve estimates; consequences of any ongoing litigation or legal lawsuits in which we’re concerned or wherein we may end up concerned; adjustments in legal guidelines, rules and rules affecting our enterprise; the geographic concentration of our locations, which makes us prone to intense typhoon harm, herbal screw ups and different nearby destructive weather conditions; threats or ability threats to protection of meals and drug safety, the incidence of a extensive health epidemic and/or pandemic or different incidents beyond our manipulate; attempts to unionize our personnel; the seasonality of our enterprise; and to utilize a sizeable portion of our NOLs or other tax attributes.