Core-Mark Acquires Forrest City Grocery Co.
SAN FRANCISCO -- Core-Mark Holding Co. signed a definitive agreement to acquire privately held Forrest City Grocery Co. for approximately $73 million, the company reported in a release.
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 within two months and is expected to be accretive beginning in 2011, excluding approximately $2.5 million in start-up and conversion costs.
"The owners, management and employees of Forrest City have built a terrific business through hard work and dedication to their customers. We believe that Core-Mark will provide the platform for the Forrest City team to continue to grow and expand, complementing the strengths of this widely respected distribution company. Our objective is to provide additional marketing programs and support to add even more customer value to the Forrest City offering," Michael Walsh, president and chief executive officer of Core-Mark said in a released statement.