The Pantry Maintains Acquisition Pace

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The Pantry Maintains Acquisition Pace

SANFORD, N.C. -- As promised, The Pantry continues to add more convenience stores to its growing chain.

The retailer expanded its reach in the southeastern U.S. by agreeing to purchase 16 Angler's Mini-Marts in the Charleston, S.C. market. The company also signed agreements to acquire two other stores, one in its home base of Sanford, N.C., and one in Columbiana, Ala.

The purchase price for the transaction was not disclosed; however, the Angler's stores generated almost $73 million in revenue in 2005. The Pantry will finance the acquisitions with a combination of cash and lease financing.

"These agreements are all strategic 'tuck-in' transactions that complement our existing store base and are expected to be immediately accretive to our earnings per share. They bring the number of stores we have acquired or agreed to acquire so far in fiscal 2007 to 33," said chairman and CEO Peter J. Sodini.

The transactions are subject to regulatory approvals and other closing conditions, and are expected to be complete in The Pantry's second quarter of 2007.

These acquisitions confirm plans that were announced at the company's fourth quarter conference call earlier this month. "The pipeline of potential acquisitions for fiscal 2007 appears very promising, and we would expect to acquire at least as many stores this year as in fiscal 2006," Sodini said at the conference.

During fiscal year 2006, which ended Sept, 28, The Pantry acquired 113 stores, an increase from the 96 stores acquired in fiscal year 2005. As of its fiscal year end, the chain operated 1,493 stores in 11 states under select banners, including Kangaroo Express, its primary operating banner.