Report: A&P Close to Selling Coffee Division

MONTVALE, N.J. - A&P reportedly is close to finalizing a deal to sell its flagship Eight O'Clock Coffee brand, The New York Post reports.

The supermarket chain is looking to sell its Rochester, N.Y.-based coffee division to Gryphon Investors, a San Francisco-based private-equity firm, for roughly $150 million, sources familiar with the situation said.

About a week ago, Gryphon signed a letter of intent to acquire Eight O'Clock, one of the country's oldest private-label coffee brands that A&P developed into a national brand over the past several decades.

The proposed deal is in the late stages of negotiations, but is not completed and could still fall apart, sources warned. However, if talks stay on track a deal could be announced within the next few weeks.

A&P is unloading the division to help pay down its debt and get back on track financially.
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