Report: Southeastern Grocers exploring a sale

The Wall Street Journal says the Jacksonville-based parent company of Winn-Dixie is in talks with prospective buyers.

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  • | 10:32 p.m. November 17, 2022
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The Wall Street Journal reported Nov. 17 that Jacksonville-based South­east­ern Gro­cers Inc., the parent company of Winn-Dixie, Harveys and Fresco y Más, is ex­plor­ing a sale, citing peo­ple fa­mil­iar with the mat­ter.

The report comes about a year af­ter the su­per­mar­ket op­er­a­tor can­celed its plans to go pub­lic.

The Journal reported the company is in talks with prospec­tive buy­ers, according to its sources.

It said that if a deal goes through, it would be an­other sign of con­sol­i­da­tion in the U.S. su­per­mar­ket sec­tor. 

Kroger Co. and Al­bert­sons Cos. agreed last month to com­bine in a $20 bil­lion deal and said they ex­pect to di­vest stores to se­cure reg­u­la­tory ap­proval, the Journal said.

The paper said South­east­ern Gro­cers, which runs about 420 stores pri­mar­ily in the South­ern U.S., was ex­pected to gen­er­ate about $9.6 bil­lion in sales in 2020, ac­cord­ing to the company’s fil­ings with the Se­cu­ri­ties and Ex­change Com­mis­sion re­lated to the planned ini­tial pub­lic of­fer­ing.

It op­er­ates more than 200 phar­ma­cies and 140 liquor stores. 

 By comparison, Kroger had $132.5 billion in revenue in 2021 and Albertsons $69.9 billion.

The Journal reported that a South­east­ern spokes­woman said the com­pany is al­ways re­view­ing ways to en­hance share­holder value and that it has an oblig­a­tion to con­sider trans­ac­tions that do so. She said the com­pany will re­main fo­cused on its strat­egy, the Journal said. 

South­east­ern filed to go pub­lic in 2020, then pulled the plan last year, say­ing that it had de­cided not to pur­sue the of­fer­ing.

The com­pany filed for Chap­ter 11 bank­ruptcy in 2018, which re­duced its debt.