“Strategically, this merger enables us to increase our infrastructure into the very important Southeastern U.S. market,” says Core-Mark CEO.
Core-Mark Holding Co. Inc., a marketer of fresh and broad-line supply solutions to the convenience retail industry in North America, has closed its previously announced acquisition of Forrest City Grocery Company (FCGC).
The final purchase price was $66 million including approximately $43 million in assets. Core-Mark funded this purchase with a combination of cash on hand and borrowings under its $200 million revolving credit facility. The deal is accretive to net income beginning in 2011, excluding approximately $2.5 million in start-up and conversion costs.
“Our focus is on the customers of Forrest City and the ways we can bring value-added service to help them grow their sales and profits,” said Michael Walsh, president and CEO of Core-Mark. “In the weeks ahead, we will be combining the hard work and dedication of the Forrest City Division team with Core-Mark’s leading marketing programs and technology. Strategically, this merger enables us to increase our infrastructure into the very important Southeastern U.S. market.”