WSJ: The Pantry Nears Deal To Be Sold

(RTTNews) - Convenience stores operator The Pantry Inc. (PTRY) is nearing a deal to be sold, though it was unclear who the buyer may be, the Wall Street Journal reported Tuesday, citing people familiar with the matter.

The Pantry operates convenience stores in the southeastern U.S. Its stores provide food, beverages, non-food merchandise and fuel, as well as ancillary products and services. It also operates 233 proprietary foodservice and quick service restaurants at its locations.

As of December 9, 2014, the Pantry operated 1,513 stores in thirteen states under select banners, including Kangaroo Express, its primary operating banner.

The Cary, North Carolina-based company has a market value of $668.08 million. However, an acquisition at a takeover premium could value the company at more than $850 million, according to the WSJ report.

Further, the WSJ reported that the Pantry has hired an investment bank to run an auction, with bids for the company due last week.

In early December, The Pantry reported net income for the fourth quarter of $14.7 million or $0.63 per share, up sharply from $1.0 million or $0.04 per share in the year-ago period. However, total revenues for the quarter declined to $1.96 billion from $2.02 billion in the same quarter last year.

Comparable store merchandise revenue for the quarter increased 2.6 percent. Fuel gross profit increased 2 percent from last year to $203.8 million, as retail fuel margin per gallon increased 6 percent to $0.122.

PTRY closed Tuesday's trading at $28.86, down $1.07 or 3.58 percent on a volume of 239,524 shares. However, in after-hours, the stock gained $5.13 or 17.78 percent to $33.99.