This acquisition will add a full-service wholesale branch in Crossville, Tenn., and supplemental branches in Bristol and Murfreesboro, Tenn. L.P. Shanks' convenience channel sales were approximately $200 million in its fiscal 2011 ended March 31, 2011.
"This acquisition will substantially expand our presence in Tennessee, Kentucky, [image-nocss] Georgia, Virginia, West Virginia and North Carolina," said Christopher H. Atayan, AMCON's chairman and CEO. "We have been carefully studying this region for several years. In the process of conducting our market research, we found that the strategy espoused by the management team at L.P. Shanks closely mirrored our strategy of providing high levels of customer service and developing long-term customer relationships. L.P. Shanks was founded in 1916 and has an excellent reputation in the industry."
He added, "With this acquisition we welcome over 700 new customers into the AMCON family and look forward to offering them our expanded product and program offerings, enhancing their ability to maximize profits. We have tremendous respect for Scot Shanks and look forward to working with him on strategic initiatives as we continue to grow our enterprise."
This acquisition will be funded primarily by AMCON's expanded credit facility with its existing bank group.
Omaha, Neb.-based AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and chilled foods and health and beauty care products with locations in Arkansas, Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON also operates 14 health and natural product retail stores in the Midwest and Florida. The retail stores operate under the names Chamberlin's Market & Cafe and Akin's Natural Foods Market.
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