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Canada抯 Couche-Tard buys U.S. chain in $860M dealFriday, December 19, 2014 > 09:24:26
Alimentation Couche-Tard Inc. (ATDb.TO 0.00%) agreed to buy The Pantry Inc. chain for about $860 million US in a deal that pairs the Canadian convenience store operator with one that has locations in the southeastern and gulf states of the U.S.
The all-cash transaction values Cary, North Carolina-based Pantry at $36.75 a share, a 27 percent premium to its closing price on Dec. 16, according to a statement today. Including debt, the deal has an enterprise value of $1.7 billion.
Couche-Tard, which means "night owl" in French, has more than 6,300 convenience stores in North America and the Pantry will add about 1,500 to its network. The Canadian company had tried to expand its presence south of the border in a $1.4 billion bid for Casey's General Stores Inc. that failed in 2010.
Couche-Tard, which also about 2,200 stores in Europe, had completed 46 deals worth $4.8 billion through September, according to data compiled by Bloomberg.
The largest transactions include one for Norway's Statoil Fuel & Retail ASA two years ago, according to the data. They also include the 2003 purchase of U.S. convenience store chain Circle K Corp. for about $830 million that almost quadrupled Laval, Quebec-based Couche-Tard's presence in the U.S.
The latest transaction is expected to close in the first half of 2015, according to today's statement.
The Pantry had advanced 23 percent to $35.52 yesterday in New York after the Wall Street Journal, without identifying its sources, reported the company might be sold.
The U.S. chain's shares rose 2.2 percent to $36.30 at 8:05 a.m. in early trading. Couche-Tard added 2.5 percent to C$43.75 in Toronto.
Couche-Tard is paying a 3.5 percent premium to Pantry's closing price yesterday.