Aldi, one of the least expensive grocery store chains in America, has sold Southeastern Grocers and its Winn-Dixie and Harveys Supermarket banners to private investors.

Aldi is selling roughly 170 Winn-Dixie and Harveys Supermarket stores to a consortium, along with Winn-Dixie’s liquor store business.

Aldi still plans to convert 220 Winn-Dixie and Harvey’s stores it previously acquired, including stores in Alabama, into Aldi locations, according to a Friday announcement.

In November, there were more than half a dozen Winn-Dixies throughout the state that started the process of or were slated to close to become Aldi stores. The company said at the time that some of the 39 Winn-Dixie locations in Alabama will be rebranded as Aldi stores, while others will continue to operate as Winn-Dixie.

The stores that have already been closed and are already undergoing renovations include:

• Northport: 10 McFarland Boulevard
• Pinson: 4701 Centerpoint Road
• Bessemer: 2910 Morgan Road, Suite 128
• Semmes: 9082 Moffett Road
• Mobile: 1550 Government Street
• Auburn: 1617 South College Street

The German company has said it intends to keep converting American grocery stores to its format through 2027.

Last week’s deal creates a new regional grocery competitor in the Southeast. The consortium is led by the CEO of Winn-Dixie’s parent company and C&S Wholesale Grocers.

The roughly 170 stores the investors acquired are located in Alabama, Georgia, Louisiana, Mississippi and Florida.

With the divestiture, Aldi is offloading roughly 42% of the approximately 400 stores it bought in 2024 along with the Southeastern Grocers business, according to Grocery Dive.

“Our commitment to thoughtful, purpose-driven growth remains strong and propels us forward with renewed momentum,” Anthony Hucker, the current president and CEO of Southeastern Grocers, and C&S Wholesale Grocers, said in a statement. “As we reinvest in the store fleet, we are inspired by listening loudly to the voices of our customers, to elevate and revolutionize our customer experience and store offerings, so that each step we take will reflect our dedication to our people and our communities.”