The Pantry Completes 38-store Purchase from Herndon Oil

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The Pantry Completes 38-store Purchase from Herndon Oil

SANFORD, N.C. -- The Pantry Inc. completed its purchase of 38 operating convenience stores and travel center units, along with one additional fee simple property, from Herndon Oil Corp., according to Richmond, Va.-based Matrix Capital Markets Group Inc.

As CSNews Online previously reported, The Pantry announced in April it planned to buy 40 convenience stores and some land from Herndon Oil as it looked to fill a gap in its existing store base by entering the Mobile, Ala., market.

The units sold comprised Herndon’s Mobile, Ala./Pensacola, Fla. marketing division. Thirty-one of the locations picked up by The Pantry are in Alabama, while six are located in Florida, and the remaining two stores are in Louisiana and Mississippi.

Herndon Oil, based in Abbeville, Ala., will continue to operate its remaining convenience store assets, which includes 15 company-operated stores located in the Dothan, Ala., region, according to Matrix Capital.

Matrix provided merger and acquisition advisory services to Herndon, which included valuation advisory, asset marketing through a structured sale process and negotiation of the transaction. Herndon directly operated all of the assets, consisting of 32 fee simple units and seven leasehold units, the company stated in a news release.

"The Pantry’s acquisition team did an excellent job of working with our client to complete a successful transaction, which was truly a win-win for both parties. We have had a long-term relationship with David Herndon, and it was an honor to represent him in this significant divestment," stated Tom Kelso, managing director and head of Matrix’s Energy and Multi-Site Retail Group, who managed the transaction along with Spencer Cavalier, vice president, and Matt Murphy, associate.

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The Pantry to Acquire 40 Stores from Herndon Oil