News

FTC accepts A&P’s proposed Pathmark acquisition

BY Antoinette Alexander

MONTVALE, N.J. The Federal Trade Commission has accepted a proposed consent agreement relating to A&P’s acquisition of Pathmark, according to grocer A&P. In addition, the Hart-Scott-Rodino Act waiting period has expired, permitting the parties to close the transaction.

A&P expects to complete the acquisition, which includes 140 Pathmark stores in New York, New Jersey, Pennsylvania and Delaware, on or about Dec. 3. According to Drug Store News estimates, the combined company will have total pharmacy revenues of more than $700 million, making it roughly the 24th largest pharmacy retailer in America, behind Duane Reade.

The terms of the consent agreement require A&P to divest six stores located in New York within a short period following completion of the acquisition. A&P noted that it has entered agreements to sell all of the stores required to be divested, and those sales have been approved by the FTC.

Those six stores being sold under the consent agreement: four Waldbaum’s stores, at 3251 Richmond Avenue South, 778 Manor Road, 4343 Amboy Road, and 1441 Richmond Avenue, and the Pathmark store at 2660 Hylan Boulevard, all on Staten Island, N.Y., to King Kullen Grocery Co.; and the Waldbaum’s store at 999 Montauk Highway, Shirley, N.Y., to Stop & Shop Supermarket Cos.

The stores being divested represent combined annualized sales of approximately $149 million and EBITDA of approximately $6 million.

The consent agreement will be subject to a 30-day public comment period, after which the FTC may propose modifications before the consent order is made final. However, A&P is not required to delay closing of the acquisition for the comment period.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

Cyber Monday shoppers jam internet

BY Doug Desjardins

NEW YORK Cyber Monday generated record volume online that caused traffic jams at some retail sites. And while the final numbers are still coming in, total sales for the day are expected to equal or exceed the $700 million forecast by research firm ComScore Networks.

According to Internet tracking firm Akamai, online traffic peaked at 4.6 million visitors per minute at the more than 300 retail Internet site it tracks. The peak traffic was 37 percent higher than Cyber Monday in 2006.

That traffic also created problems at a few Web sites. Matt Poepsel, a vice president at online research firm Gomez, reported slow checkout times at Toysrus.com, Costco.com and CompUSA.com and said smaller retailers using Yahoo reported glitches during the payment process.

As usual, consumer electronics were the main draw for online shoppers looking for bargains. Some of the deals included $50 instant savings on digital cameras at Bestbuy.com and $300 off a Garmin GPS navigation system at Walmart.com. Wal-Mart also said that it’s extending Cyber Monday for the entire week and plans to offer new bargains each day.

Shop.org, the group that coined the “Cyber Monday” phrase in 2005, expected 72 million people to shop online Monday. And while sales were heavy yesterday, Cyber Monday isn’t likely to be the busiest day of the year. The top online sales day in 2006 was Dec. 13 and on Dec. 12 in 2005. Online sales are expected to top $39 billion during the holiday season this year.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

A&P sells off Metro for $347 million as part of Pathmark acquisition

BY Adam Kraemer

MONTVALE, N.J. Grocer A&P announced on Monday that it had completed the sale of its 11.7 million shares of Metro Inc. as part of its financing plan for buying Pathmark.

A&P expects to use the $347 million from the sale, together with borrowings under a reduced Bridge Facility and a portion of its increased $675 million ABL Facility to finance the deal.

A&P announced on Nov. 19 that it had filed the 14-day notice period with the Federal Trade Commission, stating that it may consummate its acquisition of Pathmark any time after Nov. 27. It expects the deal to close in early December.

A&P had revealed in March plans to acquire 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.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?