Company News

The Pantry Completes 8-Store Purchase

Deal signals chain's first move into South Florida

SANFORD, N.C. -- The Pantry Inc., a leading independently operated convenience store chain in the southeastern United States, has completed the previously announced acquisitions of eight convenience stores in Mississippi and Florida.

Seven of the stores are in northern Mississippi, where they have been operating under the Rascal's name. The sites generated revenue of approximately $20 million in their latest fiscal year.

Separately, The Pantry purchased a single store operating under the Go Time banner in Naples, Fla. [image-nocss] That store, The Pantry's first in the south Florida market, generated revenue of approximately $10 million in 2005.

We are pleased with the steady flow of these smaller, but strategically important, acquisitions, chairman and CEO Peter J. Sodini said when the purchases were first announced in early November.

The sites in Mississippi were purchased from Graves Oil Co., Batesville, Miss., which, prior to the sale, owned 12 stores. As a BP jobber, Graves also serves 60 gas stations with a fleet of four tanker trucks. The company sells an average of 2.5 million gallons a month.

Both transactions, which are expected to be immediately accretive to The Pantry's earnings per share, were financed with a combination of cash on hand and lease financing. Terms were not disclosed.

With headquarters in Sanford, N.C., The Pantry Inc. is one of the largest independently operated convenience store chains in the country, with revenues for fiscal 2006 of approximately $6.0 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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