The Pantry Ups Deal With Marathon Petroleum
CARY, N.C. -- A year after The Pantry Inc. inked a deal with Marathon Petroleum Corp. to supply fuel to 600 of its Kangaroo Express convenience stores, both sides have agreed to up the total by 70 locations.
In a filing with the Securities and Exchange Commission (SEC) earlier this week, The Pantry stated Marathon will supply fuel to an additional 70 sites for the remainder of the agreement. The fuel purchase price is based upon Marathon's branded jobber terminal price per gallon, according to the filing.
Furthermore, the amended deal allows the volume from these additional 70 locations to count toward The Pantry's minimum volume requirement under the original agreement dated July 26, 2010. In addition, it includes plans for the locally based c-store operator to rebrand 44 of the additional sites to the Kangaroo Express/Marathon joint image by Dec. 31 of this year.
This is the second amendment to the original deal the retailer and the jobber have agreed to in the past six months. The first amendment came on Feb. 14.
This week's SEC filing did not draw immediate attention because it came on the same day that CEO Terrence Marks told the board of directors he was resigning his post to take a new position in Atlanta. After a 60-day transition period, Marks will become CEO at Hooters of America LLC, as CSNews Online previously reported.