SANFORD, N.C. -- The Pantry Inc. said that it has executed a new gasoline branding and supply agreement with Chevron covering the 66 Petro Express convenience stores that The Pantry recently acquired in North and South Carolina.
Under the agreement, all of the gasoline operations at the Petro Express stores will be converted to Chevron's Texaco brand in the months ahead.
The Pantry already has an existing long-term gasoline supply agreement with Chevron covering approximately 200 of its c-stores.
We are [image-nocss] pleased to expand our relationship with Chevron to include our new Petro Express operations, said Chairman and CEO Peter J. Sodini. The Texaco brand has good recognition in the Carolinas, and this agreement provides us with dependable fuel supplies for some of our highest-volume stores. It also enhances the overall flexibility and security of our gasoline supply.
The company completed its acquisition of Petro Express in early April for $275 million, financed with approximately $160 million of sale-leaseback proceeds and approximately $115 million in cash. The stores generated revenues of approximately $629 million for the 12 months ended October 2006. The acquisition also includes the wholesale fuels business of Carolina Petroleum Distributors of Charlotte Inc., which sells more than 100 million gallons of fuel annually to more than 450 commercial customers.
Sanford, N.C.-based The Pantry is a major independently operated c-store chain in the southeastern United States and one of the largest independently operated c-store chains in the country, with revenues for fiscal 2006 of approximately $6 billion. As of May 10, 2007, the company operated 1,639 stores in 11 states under select banners, including Kangaroo Express, its primary operating banner.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.