Earlier this month, Casey's General Stores Inc. received a buyout offer from Alimentation Couche-Tard Inc., Laval, Quebec. Couche-Tard currently operates a network of 5,883 c-stores, 4,142 [image-nocss] of which include motor fuel dispensing, located in 11 large geographic markets, including eight in the United States covering 43 states and the District of Columbia, and three in Canada covering all 10 provinces.
Casey's officials have rejected the $1.9 billion offer as too low, but the bid has spurred speculation that other chains could be acquisition targets.
(Click here for previous CSP Daily News coverage of the Couche-Tard/Casey's situation.)
Ankeny, Iowa-based Casey's owns and operates more than 1,500 c-stores in nine Midwestern states: Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin.
"If Couche-Tard is unsuccessful in buying Casey's, we believe it increases the potential that the company considers making an offer for The Pantry," Miller said.
Headquartered in Cary, N.C., The Pantry, is one of the largest independently operated c-store chains in the country. It operates 1,655 stores in 11 states under select banners, including Kangaroo Express, its primary operating banner. Kangaroo Express stores offer a broad selection of gas, food, beverages and merchandise.
Miller also said that the chain is poised to benefit as the economy improves during the next 12 to 18 months. C-stores have lagged other retail sectors, but should begin to see stronger demand for merchandise and gasoline as the job market improves and construction activity picks up, Miller said.
And The Pantry's new CEO Terry Marks has indicated that it is a priority for the chain to improve its foodservice, which should bolster financial results, said the paper.
The Pantry is scheduled to report quarterly earnings on Tuesday. The company's shares rose 96 cents today to $16.29. That's the highest level since October and a 30% increase this month, the News & Observer added.
Miller raised his rating on The Pantry to "outperform" from "market perform."The Pantry did not respond to CSP Daily News' request for comments by press time.
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