The Pantry Inc. (ticker: PTRY, exchange: NASDAQ Global Market (.O))
News Release -
The Pantry to Acquire 38 Shop-A-Snak Food Mart Stores In Alabama
SANFORD, N.C.--(BUSINESS WIRE)--March 2, 2006--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 Shop-A-Snak Food Mart, Inc., of
Birmingham, Alabama, which operates 38 convenience stores in Alabama.
The acquisition also includes dealer and fuel supply arrangements for
several additional stores. Privately held Shop-A-Snak Food Mart
generated total revenues of approximately $123 million in 2005.
Peter J. Sodini, Chairman and Chief Executive Officer of The
Pantry, commented, "We are pleased to announce this strategic
acquisition, which exactly doubles the size of our Alabama store base
and complements our existing market presence very well. Most of
Shop-A-Snak's stores currently sell Exxon or Mobil gasoline brands and
will be transferred to our branding and fuel supply agreement with
ExxonMobil Oil Corporation. We expect this transaction to be
immediately accretive to our earnings per share."
The acquisition, which is subject to regulatory approvals and
other customary closing conditions, is expected to close in the
Company's third fiscal quarter. The Company plans to finance the
transaction with a combination of cash on hand and lease financing.
Terms were not disclosed.
About The Pantry
Headquartered in Sanford, 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, with net sales for
fiscal 2005 of approximately $4.4 billion. As of December 29, 2005,
the Company operated 1,401 stores in eleven states under select
banners including Kangaroo Express(SM), our primary operating banner,
Golden Gallon(R), and Cowboys(SM). 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
ability of the Company to integrate acquisitions into its operations;
fluctuations in domestic and global petroleum and gasoline markets;
changes in the competitive landscape of the convenience store
industry, including gasoline 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
markets we serve; the effect of regional weather conditions on
customer traffic; financial difficulties of suppliers, including our
principal suppliers of gas and merchandise, and their ability to
continue to supply our stores; environmental risks associated with
selling petroleum products; governmental regulations, including those
regulating the environment; and acts of war or terrorist activity.
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 March 2, 2006. 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.
CONTACT: The Pantry, Inc.
Dan Kelly, 919-774-6700
SOURCE: The Pantry, Inc.