Acquisition of The Pantry, Inc. (PTRY) by Alimentation Couche-Tard Inc. (ATD.A ATD.B) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of The Pantry, Inc. (NASDAQ: PTRY) by Alimentation Couche-Tard Inc. (TSX: ATD.A ATD.B). On December 18, 2014 the two companies announced the signing of a definitive merger agreement. Under the terms of the agreement, The Pantry shareholders will receive $36.75 for each share of The Pantry common stock.
Is the Proposed Acquisition Best for The Pantry and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at The Pantry is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On December 9, 2014, The Pantry released its earnings results for its fourth quarter 2014, reporting strong quarterly earnings. In particular, the company reported net income of $14.7 million or $0.63 per diluted share. This compares to net income of $1.0 million or $0.04 per share in the fourth quarter of 2013. In addition, The Pantry’s reported adjusted EBITDA was $71.1 million, up from $49.0 million in the prior year quarter, while comparable store merchandise revenue increased 2.5%.
In commenting on these results, The Pantry’s President and Chief Executive Officer, Dennis G. Hatchell, remarked, “We were pleased with our fourth quarter as we grew merchandise and fuel gross profit while controlling expenses. Improved merchandising effectiveness and a 4.5% increase in sales per customer drove our 2.5% increase in comparable store merchandise sales. We have now had positive comparable store merchandise sales in 11 out of our last 12 quarters. Overall fuel performance was encouraging as our balanced approach led to an increase in fuel gross profit. Our team is working to build on all of these results in fiscal 2015.”
In light of these facts, Robbins LLP is examining The Pantry’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
The Pantry shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
The Pantry shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.