Acquisition gives Core-Mark a strong foothold in the Midwest and additional foodservice and fresh expertise.
Core-Mark Holding Co. Inc. has entered into a ‘Definitive Asset Purchase Agreement’ to acquire substantially all of the assets of Farner-Bocken Co. located in Carroll, Iowa.
The purchase price is estimated to be approximately $190 million, predicated on the value of certain assets to be determined at closing. No debt or significant liabilities are being assumed by Core-Mark in the transaction. Core-Mark, which is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America, plans to fund the purchase with borrowings under its credit facility.
The closing of this deal is subject to standard regulatory approvals, including HSR and applicable state licensing requirements for the sale of tobacco and other regulated products. The acquisition is expected to be accretive within the first year following closing, including start-up and due diligence costs in connection with the transaction.
Farner-Bocken Co. is a third-generation family held company founded in 1939 that enjoys an excellent reputation with its customers in the fourteen states in which it operates. The company employs over 1,000 people, all of whom have contributed to building an organization that has grown sales to over $1.4 billion by providing exemplary service and building strong partnerships with their customers.
“We are excited to welcome the customers and employees of Farner-Bocken to the Core-Mark family. Both of our companies have built strong reputations in the marketplace with customers, employees and suppliers. This acquisition establishes a strong foothold in the Midwest and provides Core-Mark additional expertise in foodservice and fresh that has the potential to spread through our other divisions,” said Thomas Perkins, president and CEO of Core-Mark. “Under the continued leadership of Dean Onken and Paul Francis who will be named co-division presidents, we expect the Farner-Bocken team will continue to be a market leader in providing value added programs and excellent service to their customers.”
“After a careful evaluation of potential partners to preserve the Farner-Bocken Company legacy, Core-Mark emerged as the obvious choice. Their commitment to customers and employees, along with their successful track record with previous acquisitions were the prevailing decision factors,” said John Norgaard, Farner-Bocken’s chairman. “Farner-Bocken and Core-Mark are both committed to exceeding customer expectations by offering exceptional service and complete retail solutions. Core-Mark values the relationships we have built over the years. Most importantly, they respect our culture, reputation and talented employees.”
Weil, Gotshal & Manges LLP served as counsel to Core-Mark and Davis, Brown, Koehn, Shors & Roberts, P.C. served as counsel to Farner-Bocken in the transaction.