By George Anderson
Great Atlantic and Pacific Tea Co. has announced an agreement to sell Eight O'Clock coffee to Gryphon Investors, a private equity firm.
The deal, valued at $107.5 million, will help the parent of A&P to reduce its debt load.
David Andrews, president and managing general partner, Gryphon Investors told The Deal.com, "We're very excited about acquiring this branded company which we think has superior growth prospects for us. There are real opportunities to take this brand and expand it into the ground coffee category, which is eight times the size of the whole bean category."
Moderator's Comment: What are your thoughts on the Eight O'Clock coffee deal?
Gryphon is counting on more supermarkets being willing to pick up Eight O'Clock coffee now that it is no longer going to be owned by A&P. [George Anderson - Moderator]