Sep. 2, 2010 (Business Wire) -- The Pantry, Inc. (Nasdaq:PTRY), the leading independently operated convenience store chain in the southeastern U.S., today announced that it has signed a definitive agreement to acquire 47 convenience stores.
The Company is acquiring the stores from Presto Convenience Stores, LLC. The acquisition, which will include the real estate underlying 36 of the 47 locations, is expected to be funded with cash on hand. Forty-four of the stores are located in Kansas with three stores in Missouri. The stores operate under the Presto trade name and generated revenues of approximately $194 million during the 12 months ended May, 2010. The acquisition, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the first quarter of fiscal 2011.
President and Chief Executive Officer Terrance M. Marks said, “This acquisition expands our geographic footprint and creates new fill-in opportunities for future growth. We expect this transaction to be accretive to earnings per share in the first 12 months after closing.”
Presto President Terry Presta said, “I’ve been privileged to watch the company that is now Presto grow from a single service station in Scott City, Kansas to just under 50 convenience stores in Kansas and Missouri. This move by The Pantry is a strong vote of confidence in our sites and in the communities we serve. Because of The Pantry’s vast resources and strong management, this sale will be very positive for our employees and customers.”
In a separate press release today, the Company also announced the appointment of Mark R. Bierley as the Company’s Senior Vice President and Chief Financial Officer, effective September 27, 2010. Mr. Bierley will replace Frank G. Paci, who has informed the board of directors that he plans to resign from the Company, effective September 26, 2010, to pursue other interests. Please refer to the separate press release for additional details.
About The Pantry
Headquartered in Cary, North Carolina, The Pantry, Inc. is the leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated convenience store chains in the country. As of September 2, 2010, the Company operated 1,639 stores in eleven states under select banners, including Kangaroo Express®, its primary operating banner. The Pantry’s stores offer a broad selection of merchandise, as well as gasoline and other ancillary services designed to appeal to the convenience needs of its customers.
Safe Harbor Statement
Statements made by the Company in this press release relating to future plans, events, or financial performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company's current plans and expectations and involve a number of risks and uncertainties that could cause actual results and events to vary materially from the results and events anticipated or implied by such forward-looking statements. Any number of factors could affect actual results and events, including, without limitation: the ability of the Company to take advantage of expected synergies in connection with acquisitions; the actual operating results of stores acquired; the Company's ability to enhance its operating performance through its in-store initiatives; the ability of the Company to identify, acquire and integrate acquisitions into its operations; fluctuations in domestic and global petroleum and fuel markets; realizing expected benefits from the Company's fuel supply agreements; changes in the competitive landscape of the convenience store industry, including fuel stations and other non-traditional retailers located in the Company's markets; the effect of national and regional economic conditions on the convenience store industry and the Company's markets; the global financial crisis and uncertainty in global economic conditions; wholesale cost increases of, and tax increases on, tobacco products; the effect of regional weather conditions and climate change on customer traffic and spending; legal, technological, political and scientific developments regarding climate change; financial difficulties of suppliers, including the Company's principal suppliers of fuel and merchandise, and their ability to continue to supply its stores; the Company's financial leverage and debt covenants; environmental risks associated with selling petroleum products; and governmental laws and regulations, including those relating to the environment. These and other risk factors are discussed in the Company's Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release are based on the Company's estimates and plans as of September 2, 2010. While the Company may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so.
The Pantry, Inc.
Jessica Satterlee, 919-774-6700
