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Supermarket chain Aldi plans to acquire hundreds of Winn-Dixie and Harveys Supermarket locations across the Southern U.S. in a deal that will expand the fast-growing grocer’s presence across the region.

Germany-based Aldi said in a news release Wednesday that it will take over operations of all Winn-Dixie and Harveys Supermarket locations — about 400 stores — in Florida, Alabama, Georgia, Louisiana and Mississippi.

“The time was right to build on our growth momentum and help residents in the Southeast save on their grocery bills,” said Aldi CEO Jason Hart. “The transaction supports our long-term growth strategy across the United States.”

Financial details of the transaction were not disclosed, but the deal is expected to close in the first half of 2024, the company said.

Some locations will be converted to Aldi stores after the acquisition, while others will continue operating as Winn-Dixie and Harveys Supermarket grocery stores, according to the release.

Aldi said it has invested $2.5 billion in the region since the mid-1990s. Nationwide, the company plans to add 120 new stores to reach a total of more than 2,400 stores by year-end.

While many retailers have been shuttering stores as high inflation pinches consumers’ wallets, grocers have remained resilient, as consumers have focused on necessities and remain willing to spend more on groceries.

The sale of the Winn-Dixie and Harveys Supermarket locations is a part of a larger divestiture by Southeastern Grocers, the chains’ parent company.

The Florida-based grocery company has struggled to keep its footing in the region over the past decade, filing for Chapter 11 bankruptcy in 2018 and closing nearly 100 stores at the time. In 2014, the company backed out of plans to go public, and scrapped plans to do so again in 2021.

Southeastern will also be selling another 28 of its Fresco y Más stores as part of its divestiture in a separate deal.

“This merger agreement is a testament to our successful transformational journey and the tireless work of our dedicated associates who serve our communities,” said Southeastern CEO Anthony Hucker. “ALDI shares our vision to provide exceptional quality, service and value — and this unique opportunity will evolve our business to benefit our customers, associates and neighbors throughout the Southeast.”

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