Pantry Completes Interstate Food Stops Acquisition

Assimilates 39 c-stores in Mississippi, Louisiana

Published in CSP Daily News

SANFORD, N.C. -- The Pantry Inc. said that it has completed the acquisition of 39 convenience stores in Mississippi and Louisiana from Waring Oil Co. LLC, which has been operating the stores under the Interstate Food Stops banner.

The stores generated total revenue of approximately $100 million in 2004.

The acquisition expands The Pantry's presence in Mississippi and Louisiana to a total of 100 stores, and is expected to be immediately accretive to earnings per share. The transaction was financed with cash on hand and seller lease [image-nocss] financing. Terms were not disclosed.

Headquartered in Sanford, N.C., The Pantry is a leading independently operated c-store chain in the southeastern United States and one of the largest independently operated c-store chains in the country, with net sales for fiscal 2005 of approximately $4.4 billion. As of Dec. 29, 2005, the company operated 1,401 stores in 11 states under select banners including Kangaroo Express, its primary operating banner, Golden Gallon and Cowboys.