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The Great Atlantic & Pacific Tea Company, Inc. Completes the Sale of A&P Canada
MONTVALE, NJ - August 15, 2005 - The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP) today announced that its subsidiary, A&P Luxembourg S.a.r.l., has completed the previously announced sale of A&P Canada to METRO INC., a supermarket and pharmaceutical operator in the Provinces of Quebec and Ontario, Canada. The Company said it has received proceeds of approximately $1.550 billion in cash, stock and certain debt that was assumed by the buyer, after giving effect to foreign currency contracts. The stock received consists of 18,076,645 Class A Subordinate Shares of METRO INC., representing approximately 15.83% of the outstanding shares of that class after this issuance.
Founded in 1859, A&P, one of the nation's first supermarket chains, is today among North America's largest. The Company operates 442 stores in 10 states and the District of Columbia under the following trade names: A&P, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh, Farmer Jack, Sav-A-Center and Food Basics.
This release may contain forward-looking statements about the future performance of the Company, which are based on Management's assumptions and beliefs in light of the information currently available to it. The Company assumes no obligation to update the information contained herein. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements including, but not limited to: competitive practices and pricing in the food industry generally and particularly in the Company's principal markets; the Company's relationships with its employees and the terms of future collective bargaining agreements; the costs and other effects of legal and administrative cases and proceedings; the nature and extent of continued consolidation in the food industry; changes in the financial markets which may affect the Company's cost of capital and the ability of the Company to access capital; supply or quality control problems with the Company's vendors; and changes in economic conditions which affect the buying patterns of the Company's customers.
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Investor Contact:
William J. Moss
Vice President, Treasurer
(201) 571-4019
Press Contact:
Richard P. De Santa
Vice President, Corporate Affairs
(201) 571-4495
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