AB Acquisition picks up 76 A&P banners

MALVERN, Pa. — AB Acquisition announced Monday evening that its ACME banner has entered into an agreement to acquire 76 A&P stores in Connecticut, Delaware, Maryland, New Jersey, New York and Pennsylvania under the A&P, Superfresh and Pathmark banners. 

 

Terms of the deal were not disclosed. However, if the value of the transaction mirrors that of the Ahold transaction announced Monday, the deal could be worth as much as $443.8 million. 

 

Although ACME Markets operates 107 stores across the region, Connecticut and New York would represent new markets for the banner. AB Acquisition all told operates 2,230 grocery locations in 34 states and the District of Columbia, according to Drug Store News' 2015 PowerRx report. Of those locations, 1,600 stores feature a pharmacy operation, generating $4 billion in annual prescription revenue. 

 

Since it was acquired by Albertsons in 2013, ACME Markets has improved the customer experience and store performance across the division, deploying its operational playbook to drive sales growth, the company stated.

 

The offer is subject to customary legal and bankruptcy court approvals, following A&P's Chapter 11 filing on July 19, including the potential for higher bids to be submitted and anti-trust approval. A&P has asked the court for an order requiring other bidders to submit their bids by Sept. 11, with an expectation that court approval for the sale of the stores would be received by Oct. 15.

 

RBC Capital Markets is serving as the exclusive financial advisor for his transaction. Milbank, Tweed, Hadley & McCloy is serving as lead bankruptcy counsel. Schulte Roth & Zabel is serving as outside legal counsel on antitrust matters. Greenberg Traurig is serving as outside legal counsel on real estate matters. Citigroup Global Markets and Bank of America Merrill Lynch provided committed financing in support of the acquisition.