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SANFORD, N.C. -- The Pantry Inc. has signed a definitive agreement to acquire 23 convenience stores in Virginia from Angus I. Hines Inc., which has been operating the stores under the Sentry Food Mart banner. The 23 stores generated total revenue of approximately $122 million in 2004.
Peter J. Sodini, president and CEO of The Pantry, said, "We are pleased to announce this acquisition, which we believe complements our existing base of 30 stores in Virginia very well, and is expected to be immediately accretive to our earnings per share. This transaction is consistent with our tuck-in acquisition strategy, which is focused on high-volume stores that enhance our market presence."
The acquisition, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the company's fourth fiscal quarter. The company plans to finance the transaction with a combination of cash on hand, the remaining proceeds from the previously disclosed forward equity sale agreement completed in October 2004, and lease financing. Terms of the acquisition were not disclosed.
The Pantry operates 1,390 stores in eleven states under banners including Kangaroo Express, The Pantry, Golden Gallon, Cowboys, and Lil Champ Food Store.