banner
Business

Cary-based Pantry, Canadian convenience store chain to merge

Posted December 18, 2014

The Pantry Inc., which operates Kangaroo convenience stores, plans to merge with Canada-based Alimentation Couche-Tard Inc. in a $1.7 billion deal.
Map Marker  Find News Near Me

— The Pantry Inc., which operates Kangaroo convenience stores, said Thursday that it plans to merge with Canada-based Alimentation Couche-Tard Inc. in a $1.7 billion deal.

Cary-based Pantry (Nasdaq: PTRY) would become part of Couche-Tard in the transaction, which is expected to be completed in the first half of 2015, pending regulatory approvals and a vote by Pantry stockholders.

"This is an exciting combination of two strong companies that complement each other extremely well," Pantry President and Chief Executive Dennis Hatchell said in a statement. "Unlocking the strategic value of these combined firms will benefit the current Pantry shareholders and provide ongoing opportunities for most of our employees."

The all-cash price of $36.75 per share of Pantry represents a 27 percent premium over the company's closing stock price on Wednesday and a 39 percent premium over its average price during the last 30 days, officials said.

"The Pantry is an excellent company and is well positioned in the Southeastern and Gulf Coast regions of the U.S., two of the fastest growing areas of the U.S.," Couche-Tard President and Chief Executive Brian Hannasch said in a statement. "With this transaction, we will add more than 1,500 stores to our network, which will position us as the definitive leader in this region and will reinforce our position as one of the largest convenience store operators in North America."

Couche-Tard already has 6,303 convenience stores throughout North America, operating in 40 states in the U.S., employing more than 60,000 people. The company also is a leading chain in Scandinavia and operates in more than a dozen other countries.

17 Comments

This story is closed for comments.

Oldest First
View all
  • turkeydance Dec 18, 2014

    Another NC company gets bought out. Family Dollar, Harris-Teeter, and Kerr Drug this year.
    (HT made it official this year). is Lowe's Foods next?

  • spiritseeker Dec 18, 2014

    Pantry is another US corporation taking its tax dollars out of the country. Time to boycott them.

  • Doug Hanthorn Dec 18, 2014
    user avatar

    View quoted thread


    Tax inversions are also accomplished by merging with another company in another country. It is a thinly veiled attempt to hide their purpose, but the purpose behind this is tax avoidance.

  • Doug Hanthorn Dec 18, 2014
    user avatar

    View quoted thread


    Wonderful. Move the tax burden from businesses to the poor and middle classes, because we know that "the leaches in DC" will never again tax the rich.

  • MinorityWillbeNewMajority Dec 18, 2014

    View quoted thread



    Welcome to globalization.When you have an international footing and have the capital, you are able to compare environments and determine which makes most sense from a return on investment perspective. Clearly, the US is not a very competitive environment.

  • Olenc Native Dec 18, 2014
    user avatar

    I stopped eating at Burger King for the same reason. :-/

  • Imma Annoid Dec 18, 2014
    user avatar

    View quoted thread


    If it really was, I'd take all my business there. The leaches in DC need figure out that high taxes = lower revenue and the only way they will do it is when companies set up shop outside the US.

  • rickwooten Dec 18, 2014

    Touche-Card also owns Circle K. But I do hate to see Kangaroo, prior to that incarnation, The Pantry, leave NC.

  • og Dec 18, 2014

    OK, one would think that a Canadian company, even one with French-Canadian roots, would consider the English associations when choosing a name. I mean, really?! Couche-Tard? I'm gonna be laughing all day at the images evoked by that one....

  • Steven Dec 18, 2014

    View quoted thread


    This isn't a tax inversion. Those are when they set up shop in another country and stay the same company. This is the company getting bought out by someone else. Completely different.

More...