Cary-based Pantry, Canadian convenience store chain to merge
Posted December 18, 2014
Cary, N.C. — 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.