EXHIBIT 99.1
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]
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and
Kimberly Kriger or Jim Fingeroth
Kekst and Company
(212) 521-4800
C&S SIGNS LETTER OF INTENT TO PURCHASE GRAND UNION ASSETS
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WAYNE, NJ, OCTOBER 30, 2000 - The Grand Union Company (OTC BB: GUCO), announced
today that it has entered into a letter of intent providing for the purchase by
C&S Wholesale Grocers, Inc. of substantially all of the Grand Union Company's
assets and business. Under the terms of the letter of intent, C&S, which is
Grand Union's principal supplier, will pay slightly in excess of $300 million in
cash upon closing of the transaction. Included in the assets to be acquired
pursuant to the letter of intent, are approximately 185 of Grand Union's 197
stores and the Company's distribution center in Montgomery, New York. C&S
intends to assign its right to purchase certain of these assets to third
parties.
The closing of the transaction is subject to the signing of a definitive
agreement and other customary closing conditions, including governmental
antitrust approval, Bankruptcy Court approval and C&S obtaining financing
pursuant to a bank commitment letter, which it expects to obtain shortly. This
transaction will also be 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 anticipates that a
definitive agreement would be entered into prior to the auction.
Based on the C&S letter of intent and indications of interest received from
other parties, Grand Union does not believe that any distribution will be made
to its shareholders or warrant holders following the completion of the sale
process or pursuant to a chapter 11 reorganization plan.
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
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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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