SANFORD, N.C. -- The Pantry Inc. convenience store chain completed the acquisition of D & D Oil Co. Inc. of Rome, Ga., and its 53 c-stores under the Cowboys banner in three states on Friday.
We are pleased to complete this outstanding strategic transaction, said Peter J. Sodini, The Pantry's president and CEO. The Cowboys stores are large, modern facilities that generate high average volumes. They fit very well with our existing southeastern store base and provide an entrance into Alabama. The acquisition is expected to be immediately accretive to [image-nocss] earnings.
Of the stores purchased, 23 are in Alabama, 29 are in Georgia and one is in Mississippi. The stores generated approximately $320 million in revenue in 2004. The purchase marks The Pantry's first entry into the Alabama market.
The purchase price was funded from available cash and approximately $23.8 million in proceeds from the partial settlement of an equity sale agreement the The Pantry executed in October 2004. The company will be leasing all of the stores under operating leases primarily from the seller.
Headquartered in Sanford, N.C., The Pantry is an independently operated chain in the southeastern United States, with net sales for fiscal 2004 of approximately $3.5 billion. As of March 31, 2005, the company operated 1,345 stores in 10 states under a number of banners, including Kangaroo Express, The Pantry, Golden Gallon and Lil Champ Food Store.