Core-Mark to Acquire Finkle Distributors
SOUTH SAN FRANCISCO, Calif. -- Core-Mark Holding Co. Inc. signed a definitive agreement to acquire substantially all of the assets of Finkle Distributors Inc. (FDI) for approximately $43 million.
FDI is a convenience store wholesaler serving customers in New York, Pennsylvania and surrounding states. Dan Finkle, president of FDI, will join Core-Mark to service his existing customers and growing market share through leveraging the resources of the combined companies, Core-Mark said in a statement.
The assets being purchased include 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,” Finkle said. “Core-Mark's strength in sales and marketing, along with its decentralized culture, is a great fit for our organization."
Scott McPherson, senior vice president of Core-Mark, said FDI's history of putting the customer first, coupled with consistently growing its customer base, presented a compelling 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," he added.
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. Core-Mark serves traditional convenience stores, grocery stores, drug stores, liquor stores and other specialty and small format stores that sell convenience products.