Ahold and The Pantry, Inc. on Monday announced the signing of a sales agreement for all assets of Golden Gallon. A sales price was not disclosed. The transaction is estimated to be completed in the fourth quarter subject to antitrust approval and the satisfaction of other conditions.
Golden Gallon will continue to operate under the same name it has had since it was founded in Chattanooga in 1959.
Ahold is the parent company of BI-LO, the region’s leading supermarket chain. Ahold bought Golden Gallon on May 26, 2000, and it has been part of the BI-LO operation for the past three years. The divestment of Golden Gallon is part of Ahold’s strategic plan to restructure its portfolio to focus on core food businesses.
Once the transaction closes, over 1,000 Golden Gallon store associates will transfer to The Pantry, which also has the option of hiring approximately 70 non-store employees. Should they not transfer to The Pantry, Ahold is committed to providing outplacement counseling assistance to any associates who may be displaced as part of the consolidation.
Golden Gallon officials said their most important priority was a smooth transition for the associates of the company, as well as the new owners.
“Golden Gallon values its long history in Chattanooga and other communities, and we are pleased that the Golden Gallon name will continue,” said Ron Durham, regional vice president. “We have set high standards at Golden Gallon over the past 44 years and will hand off an excellent operation to The Pantry.”
Golden Gallon operates 138 convenience stores in Georgia and Tennessee. The 36th largest convenience store operator in the United States, Golden Gallon had unaudited annual sales in 2002 of more than $375 million. The Pantry is the third largest independently owned convenience store operator in the country, with 1,272 stores in 10 southeastern states as of June 26, 2003. The publicly held company, founded in 1967, reported sales of $2.5 billion in 2002.
“The Pantry is excited about the prospects for Golden Gallon and will be working hard on the transition in the coming months,” said Peter J. Sodini, president and CEO. “We pride ourselves on quality service for all our customers and look forward to operating the Golden Gallon stores.”
R.J. Mohlman, regional vice president of BI-LO’s headquarters in Chattanooga, said the company has enjoyed its association with Golden Gallon for the past three years.
“Both companies have shared a commitment to quality products, excellent service and the communities they serve,” said Mohlman. “Our partnership helped both of us grow stronger, and we look forward to continuing to be an integral part of the growth of Chattanooga and North Georgia. Our role in this transaction will be to assist Ahold with the transition of the Golden Gallon associates over the next two months.”
Ahold Fast Facts
Ahold is a leading international food retailer and foodservice operator.
Ahold is headquartered in Zaandam, Netherlands and has shares traded on the New York Stock Exchange (AHO), Euronext Amsterdam (AHLN) and the Swiss Exchange (AHO SW).
Ahold was started as a single store on May 27, 1887 by 22-year-old Albert Heijn. The company had its initial public offering on March 1, 1948.
Ahold entered the United States market in 1977 with its acquisition of BI-LO. Ahold’s U.S. division currently operates 1,600 stores in the U.S. under the BI-LO, Bruno’s, Giant – Landover, Giant – Carlisle, Stop & Shop and Tops banners, as well as U.S. Foodservice.
Ahold looks to strengthen its core business
In November 2002, Ahold launched a company-wide initiative focused on increased organic growth, cost reduction, capital efficiency and a portfolio review. The initiative is intended to substantially improve Ahold´s competitiveness and financial performance, to generate free cash flow, and reduce debt.
As part of this focus to return to the business on which the company was founded, it is divesting itself, either in whole or in part, of business lines not directly relating to the supermarket/ food service business.
Golden Gallon’s Fast Facts
Golden Gallon was founded in 1959 selling principally dairy products. It introduced fueling systems in 1971.
Today, Golden Gallon operates 138 convenience stores in Georgia and Tennessee.
Golden Gallon is ranked 36th largest convenience store operator in the United States.
Golden Gallon is headquartered in Chattanooga, Tennessee.
Golden Gallon was acquired May 26, 2000 by Ahold, a leading international food retailer and foodservice operator.
BI-LO is a part of Ahold and has managed the Golden Gallon operation since 2000.
Golden Gallon sales have continued to grow to more than $375 million annually.
Golden Gallon and the Transaction
The Golden Gallon name will remain the same.
The Golden Gallon corporate offices will close as the operations are consolidated with The Pantry’s headquarters in Sanford, NC and approximately 70 employees will be displaced. Ahold and BI-LO are committed to providing extensive assistance to any associates displaced as part of the consolidation.
Golden Gallon will be owned and operated by The Pantry, the leading convenience store operator in the southeastern United States and the third largest independently owned convenience store chain in the country.
“Golden Gallon values its long history with the Chattanooga area market and the many other markets we have been privileged to serve. Golden Gallon is a highly respected
name in the national convenience store industry. We are very proud of our great success and realize that it would not have been possible without the hard work and
dedication of our employees.”
Ron Durham
Regional Vice President
Golden Gallon
Fast Facts
The Pantry operates more than 1,270 convenience stores in 10 southeastern states as of June 26, 2003.
The company operates stores under a number of banners including The Pantry, Handy Way, Quick Stop, Fast Lane, Big K, Mini Mart, Kangaroo, Lil Champ Food Stores, Zip Mart and Depot.
Founded in 1967, The Pantry is headquartered in Sanford, North Carolina.
The Pantry is the leading convenience store operator in the Southeast and is the third largest independently operated convenience store chain in the country.
The Pantry has a high saturation of convenience stores in Florida and South Georgia. Golden Gallon’s store footprint is a strong complement to The Pantry’s store saturation.
The Pantry, Inc. is a publicly traded company listed on the NASDAQ under the symbol (PTRY).
“The Pantry is excited about the prospects for Golden Gallon, and will be working hard on the transition in the coming months. We pride ourselves on quality service for all our customers and look forward to operating the Golden Gallon stores.”
Peter J. Sodini, President and CEO
The Pantry