The Pantry says the acquisition was funded by available cash and $23.8 million in proceeds from a stock offering made in October 2004. The convenience store chain notes that Cowboys stores generated $320 million in revenue in 2004. According to Peter J. Sodini, the Pantry's president and CEO, the Cowboys stores are large, modern facilities that generate high average volumes. The Cowboys portfolio includes 23 stores in Alabama, 29 stores in Georgia and one store in Mississippi. The acquisition is expected to be immediately accretive to earnings.
The acquisition of D & D Oil is the Pantry's second large acquisition in less than years. In 2003, the company acquired 138 Golden Gallon stores from Ahold USA Inc. The acquisition included 90 stores in Tennessee and 48 stores in northwest Georgia. The Pantry operates 1,345 stores in 10 states under a number of brands including Kangaroo Express, The Pantry, Golden Gallon and Lil Champ Food Store.
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