SYRACUSE, N.Y. -- Penn Traffic Co. here said it has completed its acquisition of 45 Acme stores from American Stores Co., Salt Lake City, for approximately $94 million.
res in northeastern Pennsylvania under a settlement agreement with the Federal Trade Commission.
Those stores are in Towanda, Mount Carmel and Pittston, Pa., where both Acme and Penn Traffic have been competing. Under the settlement, Penn Traffic must sell the Acmes in Towanda and Pittston and either the Acme or its Riverside Markets store in Mount Carmel to other supermarket operators within 12 months.
Gary D. Hirsch, Penn Traffic chairman, said the FTC's review delayed closing of the deal by about two months, which impacted fourth-quarter results.
The deal with American involves 41 Acme stores in north-central and northeastern Pennsylvania and four in south-central New York state. Of Penn Traffic's 237 stores prior to the acquisition, 64 are in Pennsylvania and 90 in New York.
The Acme stores will operate under one of four Penn Traffic banners: Insalaco Markets, P&C Food Markets, Riverside Markets or Bi-Lo Foods. A total of 25 in the Scranton/Wilkes-Barre area of Pennsylvania will operate as Insalaco's, 14 west of that region will operate under the Riverside or Bi-Lo banners, and six Acmes in southern New York will operate as P&C Foods.
The stores are expected to add volume of about $250 million to Penn Traffic's sales base of $3.2 billion.
"This is an important transaction for the continued growth of Penn Traffic," Hirsch said. "We are immediately taking steps to integrate the former Acme stores into our existing operations, with a particular emphasis on improving the variety and presentation of perishables in these stores.
