BAINBRIDGE, Ga. -- The Pantry's move into the panhandle of Florida opened up some new areas for the company to fill in, and the Southeast retailer made a move in that direction yesterday with the purchase of 24 SunStop stores in three states from Southwest Georgia Oil Co. Inc.
It was with just that intent that The Pantry approached Southwest Georgia Oil and inquired about the 22 c-stores and two travel centers, a Southwest Georgia spokesperson told CSP Daily News. We weren't intending to sell, she said.
However, CEO and president [image-nocss] Mike Harrell said that being wooed by The Pantry was evidence that the company had some great assets. We are excited that a company the caliber of The Pantry has recognized the strength of our SunStop stores, Harrell said in a press release. It is a testament to our employeesnot only those at the storesbut the whole team who has worked so hard to make SunStop profitable and give it the reputation for service and quality that brought The Pantry to our door.
We are confident that The Pantry will continue to operate the SunStops with the same commitment to customer service and cleanliness so that customers will be glad to choose SunStop for their fueling and shopping needs in the future, he added.
While letting go of the 24 stores, Southwest Georgia Oil, Bainbridge, Ga., will retain its Inland fuel name and continue serving its dealers, as well as its wholesale and propane customers. The company will also continue its fuel distribution services and its development of Seminole Biodiesel.
It also hasn't completely given up on retailing, opting to retain the recently acquired Big/Little stores in Alabama.
This agreement with The Pantry undoubtedly changes the focus of our company, said Harrell, but one of our company's strengths has always been our ability to change and adapt as our markets have changed and evolved. This is just another step in that evolutionand one that we are excited about. Wholesale petroleum sales were the foundation of our company when Dad [Jimmy Harrell] started business in 1959, so in a way we have come full circle.
Adding propane and alternative fuels to that mix is just a natural evolution for us. Of course, we are excited to still have a retail presence in Alabama with our Big/Little stores and the plans we have for ramping up their image in the future.
The 24 SunStop stores in Florida, Georgia and Alabama generated revenues of approximately $130 million in 2005.
We are pleased to announce this strategic acquisition, which marks our initial entry into the Tallahassee, Fla., and southwest Georgia markets, said The Pantry chairman and CEO Pete Sodini. These stores will help fill in the gap between our large eastern Florida store base and our recent acquisitions in Florida's Panhandle. This acquisition brings the number of stores acquired or agreed to acquire so far in fiscal 2007 to 57."
The acquisition, which is subject to regulatory approvals and other customary closing conditions, is expected to close in the company's second fiscal quarter. The company plans to finance the transaction with a combination of cash on hand and lease financing. Terms were not disclosed.
With headquarters in Sanford, N.C., 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 revenues for fiscal 2006 of approximately $6 billion. As of September 28, 2006, the company operated 1,493 stores in 11 states under select banners, including Kangaroo Express, its primary operating banner.
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