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News - Press Release


Thursday, December 2, 2010

The Pantry Completes Acquisition of 47 Convenience Stores

Source: The Pantry, Inc.

CARY, N.C., Dec 02, 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 completed the previously disclosed acquisition of 47 convenience stores from Presto Convenience Stores, LLC. The stores operate under the Presto tradename and are located in Kansas with three stores in Missouri. The 47 acquired stores generated revenues of approximately $194 million for the 12 months ended May 2010.

The acquisition is expected to be accretive to the Company's earnings per share in fiscal 2011 and was funded with cash on hand. The acquisition includes the real estate underlying 36 of the stores. Terms were not disclosed.

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 December 1, 2010, the Company operated 1,623 stores in eleven states under select banners, including Kangaroo Express(R), 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 to consummate the acquisition described herein; the ability of the Company to take advantage of expected synergies in connection with acquisition described herein; the actual operating results of stores acquired; the ability of the Company to integrate the acquisition described herein into its existing operations; fluctuations in domestic and global petroleum and gasoline markets; realizing expected benefits from the Company's fuel supply agreements; 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 Company's markets; the effect of regional weather conditions on customer traffic; financial difficulties of suppliers, including the Company's principal suppliers of gasoline and merchandise, and their ability to continue to supply its stores; environmental risks associated with selling petroleum products; and governmental 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 December 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.