Ahold Delhaize USA’s Food Lion grocery chain plans to acquire 62 Bi-Lo and Harveys Supermarket stores and a distribution center from Southeastern Grocers.
Financial terms of the deal, announced Wednesday, weren’t disclosed. Plans call for the acquired stores — 46 Bi-Lo and 16 Harveys locations in North Carolina, South Carolina and Georgia — to remain open under those banners until the transaction is finalized in the first half of 2021, pending customary closing conditions, and then be converted to Food Lion stores.
The distribution center being acquired is located in Mauldin, S.C., where Bi-Lo has its headquarters. Food Lion said ADUSA Distribution LLC will serve the 62 acquired stores and its retail network through the Mauldin facility once the deal closes.
Following the sale, Bi-Lo will have 61 stores remaining in Georgia, North Carolina and South Carolina, and Harveys will have 28 stores in Florida, Georgia and the Carolinas.
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Though Southeastern Grocers (SEG) has upgraded stores and acquired locations — focusing primarily on its largest chain, Winn-Dixie — the Jacksonville, Fla.-based retailer is looking to phase out the Bi-Lo banner. Overall, SEG currently operates 550 grocery stores under the Winn-Dixie, Bi-Lo, Harveys and Fresco y Más banners in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina. Its retail locations also include in-store pharmacies and liquor stores.
“The company continues to maintain momentum with its commitment to refreshing stores. Nearly 40% of the total store fleet has benefited from renewal in the past three years. The proceeds from this transaction will be used to further strengthen Southeastern Grocers’ balance sheet and grow SEG’s core banners,” a Southeastern Grocers spokesperson said in a statement. “The company has made the strategic decision to no longer operate stores under the Bi-Lo banner to allow for greater investment in growing the Fresco y Más, Harveys Supermarket and Winn-Dixie banners.”
Source: Supermarket News