By George Anderson
The Pantry convenience store chain has signed an agreement to purchase 138 Gold Gallon convenience stores from Ahold USA, reports Reuters. Terms of the deal were not disclosed.
According to a company statement, the deal to sell the Golden Gallon stores "is part of Ahold's strategic plan to restructure its portfolio to focus on core food businesses."
The Golden Gallon store acquisition helps strengthen The Pantry in Tennessee and Georgia. Although The Pantry operates throughout the Southern U.S., it had only 70 of its 1,300 stores located in these two states.
Moderator's Comment: What will this deal mean for Ahold and The Pantry?
Ahold is put in a better position to pay down debt (assuming the deal didn't amount to giving the chain away). It still has a long way to go, however, as it attempts to overcome the accounting miscues at US Foodservice, Tops and other businesses outside of the country.
The Pantry continues to grow, through acquisition. Here's hoping the chain has a strategy behind the acquisition and isn't simply using the purchases to cover up the lack of any real strategy on the part of management. [George Anderson - Moderator]