A&P acquires Pathmark in Northeast
A&P acquires Pathmark in Northeast
The Great Atlantic & Pacific Tea Company has acquired Pathmark for USD1.3 billion. The acquisition adds around USD4 billion in sales and 141 stores, primarily in the New York, New Jersey and Philadelphia metropolitan areas, to A&P’s current portfolio. Tengelmann, A&P’s majority shareholder, will remain the largest single shareholder of the combined company. Eric Claus, A&P president and CEO, and A&P executive chairman, Christian Haub, will retain their respective roles. The stores will continue to trade under the Pathmark banner. Pathmark shareholders will receive approximately USD13 per share, a more than 15% premium to Friday’s closing price. Yucaipa Companies, the investment group that owns about 40% of Pathmark, will receive a stake in the combined companies. The deal is expected to close in the second half of A&P’s fiscal year and is subject to shareholder and regulatory approvals. Once the deal has closed, about 86% of the new company will be held by existing A&P shareholders while the remaining 14% will be held by former Pathmark shareholders.