Southeastern Grocers announces strategic divestiture of its portfolio
Summary
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Southeastern Grocers Inc. (SEG), parent company of Fresco y Más, Harveys Supermarket and Winn-Dixie grocery stores, today announces it has entered into definitive agreements with ALDI and Fresco Retail Group, LLC to effectuate a comprehensive strategic divestiture of its businesses. Following the completion of the sales process, ALDI will serve the customers and communities of Winn-Dixie and Harveys Supermarkets through the continued operation of the banners’ existing stores. As the sales processes proceed, we’ll stay acutely focused upon delivering the exceptional quality, service and value that our customers and communities have come to expect from us.” The merger agreement has been approved by the holders of a majority of SEG’s outstanding shares, and the merger is expected to close in the first half of 2024, subject to regulatory approvals and customary closing conditions. This press release contains certain forward-looking statements regarding SEG, including, but not limited to, its financial condition, prospects and its results of operations. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: regulatory requirements; adverse economic conditions; failure to successfully execute our strategic initiatives; timing of the consummation of our strategic initiates; the impact of our strategic initiatives on our business; the competitive nature of the industry in which we conduct our business; our inability to timely identify or respond to customer trends; disruptions to our product supply or to C&S’s distribution network; our inability to maintain the services of key personnel and failure to attract, train and retain qualified staff; risks associated with providing pharmacy services at our stores; our inability to open, relocate or remodel stores on schedule; increases or fluctuations in our operating costs; increase in marketing, advertising and promotional costs and inability to implement effective marketing, advertising and promotional strategies; failure to maintain our reputation and the value of our brands, including protection of our intellectual property; risks associated with leasing substantial amounts of space, including liability under our operating leases assigned to third parties; impairment expenses on the value of our long-lived assets; changes in accounting standards, subjective assumptions, estimates and judgements by management related to complex accounting matters; failure to maintain the privacy and security of confidential customer and business information; disruptions of or compromises to our information technology system; a loss in customer confidence in the safety and quality of our products; our inability to retain the loyalty of our customers; unanticipated changes in the insurance market or factors affecting self-insurance reserve estimates; results of any ongoing litigation or legal proceedings in which we are involved or in which we may become involved; changes in laws, rules and regulations affecting our industry; the geographic concentration of our locations, which makes us vulnerable to severe storm damage, natural disasters and other local adverse weather conditions; threats or potential threats to security of food and drug safety, the occurrence of a widespread health epidemic and/or pandemic or other incidents beyond our control; attempts to unionize our employees; the seasonality of our business; and to utilize a significant portion of our NOLs or other tax attributes.