A&P to sell remaining shares of Metro to finance acquisition of Pathmark
MONTVALE, N.J. A&P has announced that it expects to close on the Pathmark acquisition in December. It also announced that it plans to sell its remaining Metro shares to finance the deal.
A&P revealed in March plans to acquire grocer Pathmark for $1.3 billion in cash, stock and debt. The move—which hardly took the industry by surprise—will create a 550-store, $11 billion supermarket chain that will likely have a greater presence in pharmacy going forward.
Assuming that the 11.7 million shares of Metro are sold prior to Nov. 30, A&P expects to use the proceeds, together with borrowings under a reduced Bridge Facility and a portion of its increased $675 million ABL Facility to finance the deal. Based on the closing price of the shares on Nov. 2, the value totals about $435 million.
“We regard the Metro divestiture as a clear near-term positive for A&P. Since the company had exited the Canadian market, the stake has little real strategic value,” stated Goldman Sachs analyst John Heinbockel in a research note. “So it is essentially being traded for the much more strategically valuable Pathmark asset.”
CVS to hold seminars, provide information on diabetes
WOONSOCKET, R.I. To help raise awareness about diabetes, CVS/pharmacy will be educating and counseling diabetes patients on topics related to the disease, the company announced Monday.
The educational seminars will cover an array of topics, including identifying symptoms and monitoring sugar levels, and will even discuss managing medications and avoiding medication interactions and potential side effects.
In partnership with the American Diabetes Association, CVS/pharmacy has produced diabetes informational materials available in pharmacies across the country, providing information on the disease such as symptoms, treatment, glucose meter testing and more.
Diabetes is a condition in which the body does not produce or properly use insulin. Insulin is responsible for converting sugar and starches into energy. Diabetes is typically treated by insulin injections to help simulate natural insulin cycles. At any time, diabetes sufferers can be taking 5 or 6 medications to treat their condition and side effects of the therapy.
Nearly 21 million adults and children suffer from diabetes, and an estimated 6.2 million are unaware they have the disease, according to the American Diabetes Association (ADA).
“Our pharmacists play an active role in helping patients manage medications for chronic diseases, such as diabetes, that can require constant monitoring,” said Papatya Tankut, vice president of pharmacy professional services at CVS/pharmacy. “It’s important that patients take the time to talk with their pharmacists, let them know about over the counter medicines and other prescriptions they are taking, or advise them on any side effects they may be experiencing. Pharmacists can provide counsel on medication compliance, side effects and potential interactions for patients who can in turn work toward a treatment plan with their doctor.”
In addition, through Diabetes Awareness Month, 1,500 select CVS/pharmacy stores throughout the country will offer support for patients with diabetes through Meter Day events, which will take place in stores nationwide.
Tesco launches surprise soft opening
HEMET, Calif. Tesco opened its first U.S. store ahead of schedule this morning with a soft opening of its store in Hemet, Calif., a small town 75 miles southeast of Los Angeles and 30 miles from its main distribution center in Riverside, Calif.
Tesco said it needed to open one Fresh & Easy Neighborhood Market ahead of its six-store grand opening on Nov. 8 “to test the systems in the store” with real customers. Hemet was among the six stores due to open Nov. 8 in Southern California with locations in Los Angeles, Upland, Anaheim, West Covina and Arcadia.
Tesco’s small format stores will not have pharmacies but are focused on healthy living. The stores will sell a wide array of healthy, prepared meals and will not carry cigarettes or tobacco. Tesco has a second round of five openings planned for Nov. 14 in Las Vegas and intends to move into San Diego and Las Vegas by the end of November.