CARY, N.C. — Stock in The Pantry convenience store chain rose sharply following its announcement Thursday of an agreement to buy 47 stores from the Presto Convenience Store chain in Missouri and Kansas.
"The acquisition expands Pantry’s reach into Kansas and Missouri and should provide for many more accretive fill-in opportunities going forward," said Karen Short, a New York-based analyst with BMO Capital Markets.
In addition, she said The Pantry — operator of the Kangaroo Express banner in the Southeast — could benefit from transitioning supply for the stores to McLane Co. and by adding new prepared-meal items and improving the coffee offering.
Terms of the acquisition were not disclosed. The Pantry said the Presto stores generated sales of about $194 million for the 12 months that ended in May. The deal is expected to close in the first quarter of 2011.
Separately, The Pantry said it has named Mark R. Bierley as senior vice president and chief financial officer, effective Sept. 27. The Borders veteran will succeed Frank G. Paci, who the company said will resign effective Sept. 26 to pursue other interests.