A&P, which operates chains under the names A&P, Waldbaum's, the Food Emporium and others, will retain the Pathmark name. Executives plan to invest in the renovation of existing stores and open new units. The integration of the two companies is expected to take six months after the deal closes.

The purchase allows Montvale, NJ-based A&P to "control our destiny in the inevitable Northeastern consolidation," said Christian Haub, A&P's executive chairman, during a conference detailing the purchase. That consolidation has included the 2004 acquisition of the Shaw's chain by Albertsons for nearly $2.5 billion.

The deal will give A&P a stronger urban presence, Haub says. The company does not plan to close any stores as a result of the deal. "We don't see any reason to eliminate stores," Haub says.