The Pantry's Purchase Complete

SANFORD, N.C. -- The Pantry Inc. completed the acquisition of 13 convenience stores in Alabama from Chatham Oil Co., which has been operating the stores under the Speedmart Food Stores banner.

"The acquisition of the new stores will continue to strengthen our presence in Alabama and allow us to expand in our market," senior vice president Steven Ferreira told CSNews Online . "The stores' locations fit perfectly with us geographically. They are great stores and we have a great group of employees. We're all very excited."

The acquisition expands The Pantry's presence in Alabama to 38 stores and is expected to be immediately accretive to the company's earnings per share. The acquisition was financed with cash on hand and seller lease financing. Terms of the transaction were not disclosed. The acquisition began on Aug. 29.

On Sept. 19, The Pantry completed the acquisition of 23 convenience stores in Virginia from Angus I. Hines Inc., which has been operating the stores under the Sentry Food Mart banner. The stores generated total revenue of approximately $122 million in 2004. That acquisition expanded The Pantry's presence in Virginia to 53 stores. It was financed with a combination of cash on hand, the remaining proceeds from a forward equity sale agreement completed in October 2004 and lease financing, CSNews Online previously reported.

Headquartered in Sanford, N.C., The Pantry operates approximately 1,400 convenience stores in the southeastern United States. Its banners include Kangaroo Express, The Pantry, Golden Gallon, Cowboys and Lil Champ Food Store.
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