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SANFORD, N.C--The Pantry Inc. acquired 39 convenience stores in Mississippi and Louisiana from Waring Oil Company LLC, adding to the company's 61 stores already operating in the region. The stores, which operated under the Interstate Food Stop banner, generated total revenue of approximately $100 million in 2004.
"This acquisition...strengthens our position in both Mississippi and Louisiana by adding stores that will complement the existing stores we currently operate in those markets," said Peter J. Sodini, president and CEO The Pantry, based here.. "This transaction is consistent with our tuck-in acquisition strategy, which is focused on adding stores that enhance our market presence. Further, we expect the addition of these units to be immediately accretive to our earnings per share."
The acquisition, which is subject to regulatory approvals and other customary conditions, is expected to close in Pantry's second fiscal quarter. The company plans to finance the transaction with cash on hand and seller lease financing. Terms of the transaction were not disclosed.
The Pantry operates 1,400 stores in 11 states under The Pantry, Kangaroo Express, Golden Gallon, Lil Champ, Sprint, Handy Way, Big K, Etna, Zip Mart, Express Stop, Quick Stop, Kwik Mart, Dash N, Smokers Express, Mini Mart, Wicker Mart, Food Chief and Cowboys banner.