Great Atlantic & Pacific Tea Co Inc
Great Atlantic & Pacific Tea — Merger or Acquisition (March 2007)
9 slides from Great Atlantic & Pacific Tea's merger presentation, Mar 6, 2007
Slide 1: The New A&P: Creating Shareholder Value
The New A&P Creating Shareholder Value Acquisition of Pathmark Stores, Inc. March 5, 2007
Slide 2: Forward-looking statements
This presentation contains forward-looking statements about the future performance of A&P and Pathmark, which are based on management’s assumptions and beliefs in light of the information currently available to it. A&P and Pathmark assume no obligation to update the information contained herein. The
Slide 3: Transaction Overview
Transaction Overview has reached an agreement to acquire Pathmark Stores, Inc. Total consideration of $1.3 billion to be paid in cash, A&P stock and debt All financing commitments are in place Integration synergies of $150 million are expected within 2 years The Boards of Directors of A&P and Pathma
Slide 4: Overview: Pro forma shareholder base and closing
Transaction Overview Pro forma, A&P shareholder base will be comprised of: • 40.9%Existing A&P public shareholders • 44.8% Tengelmann Group • 9.0%Existing Pathmark public shareholders • 5.3% Yucaipa Companies Expected to close in 2nd half of fiscal year • Subject to Federal and State Regulatory revi
Slide 5: Rationale – Pathmark combination is strategically compelling
Transaction Rationale – Pathmark combination is strategically compelling Improves cost structure and enhances ability to better compete in fragmented Northeast market Creates attractive portfolio of real estate and store locations Improved financial profile • $11 billion of combined revenues • EBITD
Slide 6: Rationale – Pathmark combination is strategically compelling
Transaction Rationale – Pathmark combination is strategically compelling Strong Infrastructure • Information systems and a supply chain already capable of handling additional stores • Leverage programs, best practices, management capabilities across larger store network to improve profitability thro
Slide 7: Pro Forma Transaction Impact
Stores LTM Sales (in millions) LTM EBITDA (in millions) LTM EBITDA Margin Source: management and public filings * Includes synergies Pro Forma Transaction Impact
Slide 8: Next Steps
Next Steps Federal and State Regulatory approval and Pathmark Stockholder approval Integration Planning between A&P and Pathmark management teams Expected to close in 2nd half of fiscal year
Slide 9: The New A&P: Creating Shareholder Value
The New A&P Creating Shareholder Value Acquisition of Pathmark Stores, Inc.
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