The Great Atlantic & Pacific Tea Co Inc (A&P) has completed its acquisition of Carteret NJ-based Pathmark Stores Inc for $1.4 billion in cash, stock, and assumed or retired debt. Pathmark shareholders received $9 in cash and 0.12963 shares of A&P stock for each Pathmark share.
This merger forms a chain of about 450 stores with $9.4 billion in annual sales volume, with leading market share in the New York metropolitan area, as well as significantly increased market share in greater Philadelphia PA and Baltimore MD.
A&P highlighted these aspects of the acquisition:
•Addition of the Pathmark brand and its high-volume, price-impact operating format, which complements A&P’s Fresh, Discount, and Gourmet operations.
•An expanded portfolio of real estate and strategic store locations in the Northeast.
•Retention of 97% combined company EBITDA from store operations.
•An improved financial profile based on $150 million in integration synergies that are anticipated to be achieved within 18 to 24 months.
•The merger of A&P’s and Pathmark’s respective technology strengths.
•Retention of key Pathmark management personnel.
