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.