The Pantry, an independently operated convenience store chain in southeastern US, has signed a definitive agreement to acquire 24 Sun Stop convenience stores in Florida, Georgia and Alabama from Southwest Georgia Oil Company. Terms of the deal have not been disclosed.
The stores included in the pending acquisition collectively generated revenues of approximately $110 million in 2005.
Chairman and CEO Peter Sodini said: We are pleased to announce this strategic acquisition, which marks our initial entry into the Tallahassee, Florida and southwest Georgia markets. These stores will help fill in the gap between our large eastern Florida store base and our recent acquisitions in Florida’s Panhandle. This acquisition brings the number of stores acquired or agreed to acquire so far in fiscal 2007 to 57.
The deal, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the company’s second fiscal quarter. The Pantry, headquartered in Sanford, North Carolina, plans to finance the transaction with a combination of cash on hand and lease financing.
As of September 28, 2006, The Pantry operated 1,493 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, designed to appeal to the convenience needs of its customers.