EXHIBIT 99.2
FOR FURTHER INFORMATION:
Analysts/Investors: Media:
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Jeffrey P. Freimark Susanne Marsh
Executive Vice President and CFO Manager, Corporate Communications
(973) 890-6340 (518) 877-0289, ext. 312
[email protected] [email protected]
and
Kimberly Kriger or Jim Fingeroth
Kekst and Company
(212) 521-4800
C&S SIGNS AGREEMENT TO PURCHASE GRAND UNION ASSETS
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WAYNE, NJ, NOVEMBER 13, 2000 - The Grand Union Company (OTC BB: GUCO), announced
today that it has entered into a definitive agreement for the purchase by C&S
Wholesale Grocers, Inc. of substantially all of the Company's assets and
business. Consistent with the terms of the previously announced letter of
intent, C&S, which is Grand Union's principal supplier, will pay $301.8 million
in cash upon closing of the transaction. Included in the assets to be acquired,
are 185 of Grand Union's 197 stores and the Company's distribution center in
Montgomery, New York. C&S intends to operate certain of these stores and to
assign its right to purchase certain other of these stores to other supermarket
operators.
The closing of the transaction is subject to customary closing conditions,
including governmental antitrust approval and Bankruptcy Court approval. The
agreement is also subject to higher or better bids for Grand Union's assets,
which may be obtained at an auction to be held on November 16, 2000, pursuant to
Bankruptcy Court procedures. Grand Union has the right to accept a higher or
better bid which might be received at the auction and terminate the C&S
agreement, subject to the payment of a break-up fee.
Grand Union filed a voluntary chapter 11 petition in the U.S. Bankruptcy Court
in Newark, New Jersey on October 3, 2000, with the stated intention to
facilitate the planned sale of the Company and provide for additional funding
during the sale process.
Grand Union operates 197 retail food stores in Connecticut, New
Jersey, New York, Pennsylvania and Vermont.
Some of the matters discussed herein are "forward-looking statements"
within the meaning of the private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from future results
expressed or implied by such forward-looking statements. For additional
information about the Company and its various risk factors, please see the
Company's most recent form 10-K for the fiscal year ended April 1, 2000, as
filed with the Securities and Exchange Commission on June 30, 2000, and form
10-Q for the fiscal quarter ended July 22, 2000, as filed with the Securities
and Exchange Commission on September 1, 2000.
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