Dutch retail giant Ahold has announced that it has signed a deal to acquire 25 A&P stores in the Greater New York area, for $146 million.
The stores, which trade under the names Waldbaum's, Pathmark and A&P, will be converted into Stop & Shop stores in the second half of 2015.
The move follows the announcement of A&P's Chapter 11 bankruptcy proceedings, which were filed on 19 July. Under the terms of this filing, other/higher bids could be received and accepted by A&P for these stores.
Stop & Shop, established in 1914, currently employs over 59,000 associates and operates 395 stores throughout Massachusetts, Connecticut, Rhode Island, New York and New Jersey.
Commenting on the move, Bernstein Research said, "This is the small-scale infill acquisition that we like Ahold to do, driving optimal synergies, better sweating of existing assets and better synergies. It allows Ahold to get closer to number one in the only big city where they are not yet dominant."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones.
