BP Inks Core-Mark Deal
New five-year supply agreement goes nationwide
LA PALMA, Calif. -- BP Products North America has entered into a five-year contract with Core-Mark International for the distributor to provide all of the ampm proprietary products to the retailer's 1,200 convenience stores nationwide. In addition, Core-Mark has been designated as the approved supplier for traditional nonproprietary products, in a move designed to further advance ampm's ongoing progress in supply-chain efficiencies, marketing program effectiveness and consistency of offerings.
"For more than two decades, we have enjoyed serving ampm franchisees in the [image-nocss] West. I believe we are in a unique position to leverage this experience nationwide and, at the same time, facilitate common goals of strengthening the industry-leading ampm franchise offer to the consumer," said Michael Walsh, chief executive officer of Core-Mark, South San Francisco, Calif.
Meanwhile, Core-Mark Holding Co. Inc. has announced that it has amended and extended for four years its credit facility in the amount of $200 million. JP Morgan Chase Bank NA and BMO Capital Markets served as co-lead arrangers and joint bookrunners.
"We believe our amended facility will provide the necessary liquidity for our current needs and also the flexibility to expand our facility as we execute our growth strategies, including acquisitions," said Stacy Loretz-Congdon, chief financial officer for Core-Mark Holding Co. "We were very pleased that we were oversubscribed, and we thank our lenders for their confidence and tremendous partnership shown during this process."
Core-Mark is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. Founded in 1888, Core-Mark provides distribution and logistics services as well as marketing programs to more than 24,000 retail locations in 50 U.S. states and five Canadian provinces through 26 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.
The ampm brand was founded in 1978 in Southern California by Atlantic Richfield (ARCO), which was acquired by BP in 2000. ARCO-branded ampm stores are currently found in California, Nevada, Oregon, Washington and Arizona; BP-branded ampm stores are located in Chicago, Indianapolis, Pittsburgh, Orlando, Columbus, Cleveland, Cincinnati and Atlanta.
BP supplies more than 15 billion gallons of gasoline every year to U.S. consumers through 12,000 retail outlets. It is the single, global brand formed by the combination of the former British Petroleum, Amoco, ARCO, ARAL and Burmah Castrol.