CARY, N.C. -- The Pantry Inc. is not an acquisition target, according to CEO Terry Marks, appearing on CNBC's Fast Money Half-Time Report yesterday. The large, southeastern convenience retailer will be a "net acquirer," he said.
"There are over 140,000 convenience stores in the U.S., and of that 140,000, less than 20% are part of a 100-store chain or larger, so I think it's clear that you're going to see consolidation take place over time," Marks told the financial news report, "and we plan to be a net acquirer. At the end of the day, it's all about creating value [image-nocss] for our shareholders."
In April, William Blair & Co. analyst Mark Miller wrote in a research note that The Pantry, which owns more than 1,650 convenience stores in 11 states, could become an acquisition target for Alimentation Couche-Tard Inc., Laval, Quebec, which is currently in a battle to take over Ankeny, Iowa-based Casey's General Stores Inc. (See related coverage in this issue of CSP Daily News).
"If Couche-Tard is unsuccessful in buying Casey's, we believe it increases the potential that the company considers making an offer for The Pantry," Miller wrote at the time.
(Click here for previous CSP Daily News coverage.)
CNBC also asked if The Pantry was looking into the possibility of becoming charging stations for electric vehicles.
"It's one of the things that's clearly one of things that's on our minds from a long-term standpoint, but all of the data we look at is that we're going to be dealing with fossil fuels for a good bit of time to come, so in the near term, it's not in our game plan," Marks said. "But long term, I think everybody is paying attention to it."
Shares of the Pantry up 68% in 2010, said CNBC. See the video for more details, or click here.
Headquartered in Cary, N.C., The Pantry operates under several banners, including Kangaroo Express, its primary operating banner. Kangaroo Express stores offer a broad selection of gasoline, food, beverages and merchandise.
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