Core-Mark Purchases Klein Candy Co. Assets
South San Francisco, Calif. -- Core-Mark Holding Co. Inc., one of the largest North American distributors to the convenience store industry, announced that it has signed a definitive agreement to buy all of the assets of Klein Candy Co.
Core-Mark will incorporate the Klein operations into its existing distribution network, creating a national distribution capacity. The deal is expected to close later this month. Core-Mark expects to fund the transaction, valued at approximately $65 million, from excess availability under its $250 Revolving Credit Facility.
"We are pleased to have this definitive agreement signed and be well on our way to the close of this very exciting next step in Core-Mark's evolution," said Michael Walsh, CEO of Core-Mark. "We believe this is a critical step in providing national service as part of our quest to be the leading distributor to the convenience industry in North America."
"We are thrilled to join Core-Mark with its tradition of customer service dedication and believe the joining of forces with Core-Mark will serve the Klein customers very well," added Steven Dressler, CEO of Klein.
Core-Mark is one of the largest broad-line, full-service wholesale distributors of packaged consumer products to the convenience retail industry in North America. The company provides distribution and logistics services, as well as marketing programs, to approximately 20,000 retail locations in 38 states and five Canadian provinces through 24 distribution centers, two of which Core-Mark operates as third party logistics providers. Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry consumer packaged goods.
Klein Candy Co., trading as Klein Wholesale Distributors, is a 96-year-old full-service master and convenience store distributor of, among other things, cigarettes, tobacco, groceries (including frozen and refrigerated), HBC, candy, foodservice, beverages, paper products and general merchandise. Klein currently stamps cigarettes, provides full service and delivers products to nine states, including Pennsylvania, Michigan, New York, New Jersey, Connecticut, Maryland, Delaware, Washington D.C., and Virginia.
Core-Mark will incorporate the Klein operations into its existing distribution network, creating a national distribution capacity. The deal is expected to close later this month. Core-Mark expects to fund the transaction, valued at approximately $65 million, from excess availability under its $250 Revolving Credit Facility.
"We are pleased to have this definitive agreement signed and be well on our way to the close of this very exciting next step in Core-Mark's evolution," said Michael Walsh, CEO of Core-Mark. "We believe this is a critical step in providing national service as part of our quest to be the leading distributor to the convenience industry in North America."
"We are thrilled to join Core-Mark with its tradition of customer service dedication and believe the joining of forces with Core-Mark will serve the Klein customers very well," added Steven Dressler, CEO of Klein.
Core-Mark is one of the largest broad-line, full-service wholesale distributors of packaged consumer products to the convenience retail industry in North America. The company provides distribution and logistics services, as well as marketing programs, to approximately 20,000 retail locations in 38 states and five Canadian provinces through 24 distribution centers, two of which Core-Mark operates as third party logistics providers. Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry consumer packaged goods.
Klein Candy Co., trading as Klein Wholesale Distributors, is a 96-year-old full-service master and convenience store distributor of, among other things, cigarettes, tobacco, groceries (including frozen and refrigerated), HBC, candy, foodservice, beverages, paper products and general merchandise. Klein currently stamps cigarettes, provides full service and delivers products to nine states, including Pennsylvania, Michigan, New York, New Jersey, Connecticut, Maryland, Delaware, Washington D.C., and Virginia.