Core-Mark to Acquire Pine State Trading's Convenience Division
SOUTH SAN FRANCISCO — Convenience distributor Core-Mark Holding Co. Inc. finalized a definitive asset purchase agreement to acquire substantially all the assets of Pine State Convenience, a division of Gardiner, Maine-based Pine State Trading Co. The transaction is structured as an all-cash asset acquisition.
The purchase price is estimated to be approximately $112 million, based on the value of certain assets to be determined at closing. No debt or significant liabilities are being assumed in the transaction.
"We are extremely pleased to welcome the customers and employees of Pine State Convenience to the Core-Mark family. Both of our companies have experienced great success over the past decade largely due to our reputations in the marketplace with customers, employees and suppliers," stated Core-Mark President and CEO Thomas B. Perkins. "This acquisition affords us the opportunity to widen our geographic footprint in an area where we have a limited presence and offer Pine State Convenience customers a new spectrum of products and marketing programs that have brought our own retailers success."
Pine State Convenience serves the Northeast and employs more than 500 people who have contributed to building a distribution organization that has grown its sales to nearly $1 billion through exemplary customer service, advocating vendor consolidation, and data-driven selling, the company said. Pine State's Keith Canning will continue to lead the acquired assets as division president.
"I am honored to lead this team of dedicated employees who share my passion of delivering innovative solutions and exceptional service to our customers and suppliers," Canning said. "Core-Mark's investment in Maine will bring advanced technology and proven marketing programs that will provide new opportunities to help our customers continue to grow."
Core-Mark will fund the purchase through a combination of cash on hand and borrowings under its credit facilities. Closing of the deal is subject to standard regulatory approvals, and the acquisition is expected to be accretive in the first year. Core-Mark reported that it expects to invest approximately $3.1 million in startup, due diligence and conversion costs in connection with the acquisition.
"Core-Mark was the obvious choice to continue our legacy of helping our convenience store customers build their respective businesses," said Nick Alberding, CEO of Pine State Trading Co. "Pine State and Core-Mark are both committed to exceeding customer expectations while offering exceptional service and complete retail solutions. In addition, Core-Mark values the relationships we have built over the years, and most importantly, respects our culture, as well as our experienced and talented employees."
Core-Mark offers a full range of products, marketing programs and technology solutions to approximately 35,000 customer locations in the United States and Canada through 29 distribution centers.