UPDATE 1-Pantry to buy 47 stores; names ex-Borders exec CFO

Thu Sep 2, 2010 8:02am EDT

* Expects to fund deal with cash on hand

* Sees deal closing in Q1 of FY11

* Former Borders CFO named new finance chief

Sept 2 (Reuters) - Convenience store operator Pantry Inc (PTRY.O) said it is buying 47 stores from privately held Presto Convenience Stores LLC to expand its geographic footprint, and that its Chief Financial Officer Frank Paci plans to resign.

Paci, who will step down on Sept. 26, will be replaced by Mark Bierley, formerly CFO at Borders Group Inc BGP.N, the second-largest U.S. book store chain. [ID:nASA00PDZ]

Pantry, which operates stores under banners like Kangaroo Express, said it will fund the deal with cash on hand. It did not disclose the terms of the deal.

The company expects the deal to add to its profit in the first year after the closing, expected to be in the first quarter of 2011.

The stores -- 44 of which are located in Kansas, while the rest are in Missouri -- generated revenue of about $194 million during the 12 months ended May, the company said. [ID:nASA00PE5] Cary, North Carolina-based Pantry's shares have risen 24 percent in the last one year, outperforming the wider S&P Food Retail Sub-Industry Index .GSPRETF, which slipped 2 percent in the same period.

Pantry shares closed at $19.60 Wednesday on Nasdaq. (Reporting by Shradhha Sharma in Bangalore; Editing by Anne Pallivathuckal)

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