Southeastern Grocers Promoting 62 Shops to Meals Lion, Dissolving Bi-Lo Banner

Food Lion plans to acquire 46 Bi-Lo and 16 Harveys supermarket stores in North Carolina, South Carolina and Georgia from Southeastern Grocers (SEG). This is part of SEG’s larger plan to stop doing business under the Bi-Lo banner and instead invest in the Fresco y Más, Harveys Supermarket and Winn-Dixie banners. SEG continues to look for strategic options for the remaining Bi-Lo branches.

The transaction with Food Lion for 62 stores will be completed over a staggered period from January to April 2021.

The asset deal with SEG also includes the acquisition of an additional distribution center. Food Lion’s network of stores, including the new locations, is served by ADUSA Distribution LLC through its distribution center in Mauldin, SC. This handover is also expected in the first half of 2021.

“We’re excited to add these new locations to our 630+ stores in Georgia and the Carolinas,” said Meg Ham, President of Food Lion. “We have been looking after customers in these larger regions for almost 60 years. We’re excited to add these locations and bring even more cities in these three states to fresh, high quality products at affordable prices every day, with the caring, friendly service that customers expect from their local Food Lion. “

In a more immediate move, SEG is selling the assets of 57 of the in-store pharmacies operating under the Bi-Lo and Harveys Supermarket banners to CVS and Walgreens. These locations will begin their transition in the next two weeks.

“Successfully executing our long-term transformation strategy can sometimes require difficult decisions,” said Anthony Hucker, President and CEO of SEG. “Today’s transactions are a critical strategic step and an important next step in our continued growth and wider development as a company. These moves will enable greater investments in our remaining footprint so that we can continue to deliver an exceptional shopping experience to our customers can always rely. ” . ”

These announcements come just a week after SEG announced the opening of eight new Winn Dixie stores in the former Lucky’s Market and Earth Fare stores in Florida.

Deutsche Bank Securities Inc. and PJ Solomon are serving as financial advisor to SEG on the transactions, while Weil Gotshal, Wilson Sonsini and Burr Forman are serving as legal counsel. PJ Solomon manages the company’s sales process for the remaining Bi-Lo stores.

Based in Salisbury, NC, Food Lion has more than 1,000 stores in 10 southeastern and mid-Atlantic states and employs more than 77,000 people. Parent company Ahold Delhaize USA is number 11 on PG 100, Progressive Grocer’s 2020 list of the best grocery retailers in North America.

SEG operates 550 grocery, liquor, and pharmacy stores in the seven southeastern states of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, and South Carolina. Based in Jacksonville, Florida, the company is number 34 on The PG 100, while the Walgreens Boots Alliance of Deerfield, Illinois is number 4 and CVS Health of Woonsocket, RI is number 6.