A&P-Pathmark Integration on Target: Haub

NEW YORK — The integration of Pathmark into A&P’s business is on target to generate $40 million or more in annual cost-of-goods savings, Christian Haub, executive chairman of A&P, Montvale, N.J., said in a presentation here Wednesday. Haub, whose company purchased A&P last year, said that the $40 million figure — part of an annual synergy projection of $150 million — was “conservative” but would require cooperation from suppliers. Reduced administrative costs, including the consolidation of the company’s respective headquarters, will generate $80 million in synergies, while another $30 million is projected to come from savings in areas such as logistics and advertising, Haub said at the Lehman Brothers Restaurant and Retail conference.

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