Core-Mark Holding Co. Inc., a marketer of fresh and broad-line supply solutions to the convenience retail industry in North America, has signed a definitive agreement to acquire the assets of Finkle Distributors Inc. (FDI) for approximately $43 million.
FDI is a regional convenience wholesaler servicing customers in New York, Pennsylvania and surrounding states. Dan Finkle, president of FDI, is set to join Core-Mark to service his existing customers and growing market share through leveraging the resources of the combined companies.
The assets being purchased include primarily accounts receivable, inventory and fixed assets and do not include the purchase of real property or the assumption of significant liabilities. Core-Mark expects to fund the transaction from a combination of cash and borrowings under its $200 million Revolving Credit Facility. The deal is expected to close in August and be accretive in 2010, excluding approximately $2.6 million in start up and conversion costs.
FDI is expected to contribute annual sales of approximately $350 million. “During this sale process I have developed strong relationships within Core-Mark and have confidence this transaction provides a brighter future for our customer base and employees. Core-Mark’s strength in sales and marketing along with its decentralized culture is a great fit for our organization,” Finkle said.
“FDI’s long history of putting the customer first, coupled with consistently growing its customer base, presents a compelling synergistic opportunity for both companies. This acquisition increases our geographic footprint in the Northeast and expands the opportunity to bring our industry leading vendor consolidation and fresh initiatives to a larger population of convenience retailers,” said Scott McPherson, senior vice president of Core-Mark.
Core-Mark provides distribution and logistics services as well as marketing programs to approximately 25,000 retail locations in 50 U.S. states and five Canadian provinces through 26 distribution centers, two of which Core-Mark operates as a third party logistics provider.