The Pantry Completes Acquisition of 53 Cowboys Convenience Stores

SANFORD, N.C. -- Leading independently operated c-store chain The Pantry, Inc. here said it had completed the acquisition of D & D Oil Co., Inc. of Rome, Ga., a move which marks its entrance into Alabama. D & D operates 53 convenience stores under the Cowboys banner in Alabama (23), Georgia (29) and Mississippi (1), which generated approximately $320 million in revenue in 2004.

The purchase was funded from available cash and approximately $23.8 million in proceeds from the partial settlement of a forward equity sale agreement the company executed in October 2004. The Pantry said it will lease all of the stores under operating leases primarily from D & D.

"We are pleased to complete this outstanding strategic transaction," said Peter J. Sodini, The Pantry's president and c.e.o., in a statement. "The Cowboys stores are large, modern facilities that generate high average volumes. They fit very well with our existing southeastern store base and provide an entrance into Alabama. The acquisition is expected to be immediately accretive to earnings."

The Pantry, Inc. operates 1,345 stores in 10 Southeast states under a number of banners, including Kangaroo Express, The Pantry, Golden Gallon, and Lil Champ Food Store.