SOUTHERN PINES, N.C. -- Seven years after opening its first store under the Fuel Mate Express banner in Siler City, N.C., Fuel Mate LLC has pulled the plug on its six-store operation, opting instead to sell the properties to competitor The Pantry, as reported yesterday in a CSP Daily News Flash. The six sites include one store in The Pantry's hometown of Sanford, N.C.
Attempts to reach executives at Southern Pines, N.C.-based Fuel Mate for comment were unsuccessful; however, the sale of the six stores, all but one of which were built new by the [image-nocss] company, illustrates a recent change of strategy compared to statements on the company website, which notes, The ownership believes strongly in the future viability of the convenience store industry. While its dynamic continues to change, Fuel Mate intends to be at the forefront of store design, product placement and synergistic profit centers.
The six stores, which are all located near The Pantry's headquarters, generated revenues of approximately $24 million in 2005, according to The Pantry.
The transaction, which is expected to be immediately accretive to The Pantry's earnings per share, is subject to regulatory approvals and other customary closing conditions. It is expected to close in the company's fourth fiscal quarter and will be financed with a combination of cash on hand and lease financing. Terms were not disclosed.
Separately, The Pantry recently acquired a c-store in Gadsden, Ala., which will be rebranded under the chain's flagship Kangaroo Express banner. In addition, following the acquisition of certain dealer fuel supply arrangements from Lee-Moore Oil Co. in February, The Pantry purchased one of the stores it was supplying with fuel.
"The acquisition of these eight stores will bring the number of stores acquired so far in fiscal 2006 to 107, exceeding the total of 96 acquired in the previous fiscal year," said The Pantry chairman and CEO Peter Sodini.
The Pantry Inc. is a 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 net sales for fiscal 2005 of approximately $4.4 billion. As of March 30, 2006, the company operated 1,458 stores in 11 states under several banners.
In other real estate news, Shelby Investment Group LLC, Memphis, Tenn., bought two c-stores from Sisco Inc. for $2.9 million, according to a report in the Memphis Daily News. The former Sisco Foods stores have since been rebranded Raleigh C-Stores. Shelby Investment Group financed the purchase with a $2.5 million mortgage through First Capital Bank.
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