11 am UPDATE: In addition to the sale of 62 stores to Food Lion, Southeastern Grocers said that it would transfer 57 of its in-store pharmacy businesses to CVS and Walgreen, and is in the process of looking for a buyer for 63 stores - 61 Bi-Lo units and 2 Harveys - not included in the Food Lion deal.
According to the announcement, "These transactions build on previous announcements made by SEG — such as the opening of a new store earlier this year and the acquisition of eight new store locations from Lucky’s Market and Earth Fare — as part of its business transformation strategy to strengthen its overall performance in an increasingly competitive sector. The Company continues to maintain momentum with its commitment to refreshing stores; nearly 40 percent 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."
Scott Moses of PJ Solomon is serving as financial advisor to Southeastern Grocers for these transactions.
Ahold Delhaize-owned Food Lion this morning announced that it is acquiring 62 stores from Southeastern Grocers that have been operated under the Bi-Lo and Harveys banners.
Terms of the deal were not disclosed. Regulatory approvals are required before the deal can be finalized, which is expected to be early 2021.
The stores will be converted to the Food Lion banner. The deal also includes the acquisition of an additional Southeastern Grocers distribution center in Mauldin, S.C.
“We are so excited to add these new locations to our more than 630 stores across Georgia and the Carolinas,” said Food Lion President Meg Ham in a prepared statement. “We’ve been serving customers in these larger regions for almost 60 years. We’re thrilled to add these locations and serve even more towns and cities across these three states with fresh, quality products at affordable prices every day with the caring, friendly service customers expect from their local Food Lion.”
Food Lion currently operates more than 1,000 stores in 10 Southeastern and Mid-Atlantic states.