You are here
NEW YORK - New York grocer Gristede's Foods said late last week it will pay $120 million for the upscale Kings Super Markets chain, contingent upon it selling $150 million in senior notes on the bond market, the Newark Star-Ledger reports.
The price is $35 million less than what Gristede's offered in June 2002 for the 27-store chain based in Parsippany, N.J. That deal fell apart when Gristede's could not secure financing.
The newest offer price is largely related to a sharp drop in profits at Kings in its latest quarter, according to the newspaper.
Kings' British parent, Marks & Spencer, has tried repeatedly for the last three years to unload its U.S. property.
Gristede's Chief Executive John Catsimatidis said he was more confident this time around.
"The bond market is very hot," he said. "We think it (Kings) makes a good match with Gristede's. We like the Kings name and we like the Kings people."