Mergers & Acquisitions

Couche-Tard, Pantry Complete Merger

Combined U.S., Canadian convenience store count approaches 8,000 locations

CARY, N.C. --The Pantry Inc. said in a document filed with the U.S. Securities & Exchange Commission (SEC) that it completed its merger with Laval, Quebec-based Alimentation Couche-Tard Inc. on March 16, 2015.

Couche-Tard Pantry Kangaroo (CSP Daily News / Convenience Stores / Gas Stations)

The announcement follows the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 on March 13 and the approval of The Pantry's shareholders on March 10.

Laval, Quebec-based Couche-Tard first announced the deal with Cary, N.C.-based The Pantry about four months ago, on Dec. 18, 2014. The price tag: approximately $860 million. The all-cash transaction is valued at $36.75 per share, with a total enterprise value of approximately $1.7 billion including debt. The transaction price represents a premium of 27% to The Pantry's closing share price on Dec. 16, 2014.

The Pantry 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. As of Jan. 29, 2015, the company operated 1,509 convenience stores in 13 states under select banners, including Kangaroo Express, its primary operating banner.

The stores offer a broad selection of merchandise, fuel, tobacco, food and beverages and other products and services. It offers lottery in all states except Alabama and Mississippi. As of Dec. 25, 2014, it operated 233 quick-service restaurants (QSR) and 231 car washes. It sells self-service fuel at 1,502 locations, of which 1,031 sell fuel under major oil company brands including BP, CITGO, ConocoPhillips, ExxonMobil, Marathon, Shell and Valero.

Couche-Tard operates a network of more than 6,300 convenience stores throughout North America, including approximately 4,850 stores with fuel dispensing. Its North American network consists of 13 business units, including nine in the United States (under the Circle K brand) in 40 states and four business units in Canada (under the Mac's and Couche-Tard brands) covering all 10 provinces.

Post-merger, the combined U.S. and Canadian store count is more than 7,800, which is within shouting distance of 7-Eleven's approximately 8,660 U.S. and Canadian stores, including separate Hawaiian operations and area licensees.

Adding to Couch-Tard's network--in a deal also announced on March 16--are 21 Tiger Tote convenience stores (and 151 dealer sites) it is acquiring from Cinco J Inc. (dba Johnson Oil Co.), Gonzales, Texas.

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