The Pantry Completes Sentry Acquisition

Purchase of Angus I. Hines units boosts Virginia presence

Published in CSP Daily News

SANFORD, N.C. -- The Pantry Inc. has announced that it has completed the acquisition of 23 convenience stores in Virginia from Angus I. Hines Inc., which has been operating the stores under the Sentry Food Mart banner.

The stores generated total revenue of approximately $122 million in 2004. The acquisition expands The Pantry's presence in Virginia to 53 stores, and it is expected to be immediately accretive to the company's earnings per share. It was financed with a combination of cash on hand, the remaining proceeds from a forward equity sale agreement [image-nocss] completed in October 2004, and lease financing.

Terms of the transaction were not disclosed.

Headquartered in Sanford, N.C., The Pantry is the leading independently operated convenience 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 2004 of approximately $3.5 billion.

As of June 30, 2005, the company operated 1,386 stores in 11 states under a number of banners including Kangaroo Express, The Pantry, Golden Gallon, Cowboys and Lil Champ Food Store. The Pantry's stores offer a broad selection of merchandise, as well as gasoline and other ancillary services designed to appeal to the convenience needs of its customers.