A recent transaction between Core-Mark and Pine State Trading Co. is expected to improve Core-Mark’s financial outlook for 2016.
Core-Mark Holding Co. Inc. has officially closed on its purchase of Pine State Convenience.
According to a report from StreetInsider.com, Core-Mark now owns the Pine State Convenience division of Gardiner, Maine-based Pine State Trading Co. The transaction reportedly amounted to approximately $88 million, and it was paid in cash. The purchase price, however, is still subject to post-closing adjustments.
StreetInsider.com reported that Core-Mark used a combination of cash on hand and borrowings from its credit facility to fund the purchase. In addition to the purchase price, Core-Mark has projected that the company will encounter approximately $1.6 million in start-up and due diligence costs before year’s end, and it expects to spend an additional $1.5 million in system conversion costs during 2017.
Considering the recent acquisition, Core-Mark has adjusted its financial outlook and guidance for 2016, StreetInsider.com reported. The report from StreetInsider.com outlined the following changes that Core-Mark has made to its 2016 financial expectations:
- The company has raised its net sales, diluted EPS and Adjusted EBITDA guidance for the full year of 2016.
- Annual net sales are now expected to be between $14 billion and $14.5 billion, up from $13.4 billion to $13.8 billion.
- Adjusted EBITDA is now expected to be between $157 million and $164 million, up from $153 million and $160 million.
- Diluted earnings per share are expected to be $2.31 to $2.46, up from $2.26 to $2.41.
- Diluted per-share estimates, excluding LIFO expense, are expected to be between $2.65 and $2.80, up from $2.60 to $2.75.