SANFORD, N.C. -- The Pantry Inc. said that it has completed the previously announced acquisition of 66 Petro Express convenience stores in North and South Carolina from Petro Express Inc.
The stores generated revenues of approximately $629 million for the 12 months ended October 2006. The acquisition also includes the wholesale fuels business of Carolina Petroleum Distributors of Charlotte Inc., which sells over 100 million gallons of fuel annually to more than 450 commercial customers.
We are very pleased to complete this important [image-nocss] strategic acquisition, said chairman and CEO Peter J. Sodini. We believe the addition of Petro Express significantly strengthens our presence in the Charlotte market and provides us with an excellent platform for future growth in one of the Southeast's fastest-growing metropolitan areas. Not only does Petro Express command a leading market position, but its stores are primarily large, modern facilities that generate average revenues well above those of any previous acquisition in the company's history.
The acquisition is expected to be immediately accretive to The Pantry's earnings per share. The $275 million purchase price was financed with approximately $160 million of sale-leaseback proceeds and approximately $115 million in cash. In connection with the acquisition, the company exercised its right to add $100 million to the existing term loan under its senior secured credit facilities. The company also is in the process of renegotiating certain terms of its credit facilities to lengthen their maturity and provide additional financial flexibility. Any refinancing of the Company's existing credit facility is subject to many considerations, including negotiation of acceptable terms.
Headquartered in Sanford, N.C., The Pantry 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 revenues for fiscal 2006 of approximately $6 billion. As of April 5, 2007, the company operated 1,625 stores in 11 states under select banners, including Kangaroo Express, its primary operating banner.
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