This article was last updated on April 16, 2022
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Alimentation Couche-Tard Inc. has announced a deal worth almost $860-million (U.S.) to acquire the 1,500-unit U.S. convenience-store chain The Pantry Inc., which values The Pantry at $36.75 per share. The deal is said to be an all-cash transaction but including debt, the deal is valued at $1.7-billion. The price-per-share represents a premium of 27 per cent to The Pantry’s closing share price on Tuesday.
According to a statement by Couche-Tard president and chief executive, Brian Hannasch, it was assured that the company is well positioned in the fast-growing U.S. Southeast and Gulf Coast region. In their remarks, analysts and investors said they had suspected another takeover since Couche-Tard’s successful integration of the retail operations of Norway’s Statoil oil-and-gas company acquired for about $2.8-billion in 2012. Meanwhile, Couche-Tard gave up a hostile bid of about $1.4-billion for Casey’s General Stores Inc. in 2010. The company has a leading presence as a consolidator in the United States. It boasts a total of about 8,500 gas and convenience stores globally, which is an increment from 5,869 in 2010. Couche-Tard shares have soared more than 400 per cent since 2010.
The Pantry’s main banner is Kangaroo Express, whereas its key banner in the U.S. and Canada is Circle K and Mac’s network. In a news release issued by Mr. Hannasch on Thursday, he mentioned that “we strongly believe that our all-cash offer is compelling for The Pantry’s shareholders as it offers them the opportunity to realize full and immediate value for their investment.” Although the deal is believed to be supported by the boards of both companies, it still requires regulatory clearance and approval from The Pantry shareholders.
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