SOUTH SAN FRANCISCO, Calif. -- Core-Mark Holding Co. Inc., one of the largest marketers and distributors of fresh and broad-line supply solutions to the convenience-store industry in North America, has completed the acquisition of Carroll, Iowa-based Farner-Bocken, a family-owned distributor of convenience foodservice products serving about 6,000 customers in 14 Midwest states.
The adjusted purchase price was approximately $174 million, paid in cash and subject to post-closing adjustments. Core-Mark assumed no debt or significant liabilities in connection with the transaction. It funded the purchase with borrowings under its credit facility. Core-Mark expects to spend approximately $1.5 million in start-up and due diligence costs this year.
"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 B. Perkins, president and CEO of South San Francisco-based Core-Mark, in May when the acquisition was first announced.
As part of the deal, Dean Onken and Paul Francis were 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," Perkins said.
Farner-Bocken is a family owned distributor of convenience foodservice products serving about 6,000 customers in 14 Midwest states: Iowa, Minnesota, Wisconsin, Illinois, Missouri, Kansas, Oklahoma, Arkansas, Nebraska, Colorado, North Dakota, South Dakota, Wyoming and Montana. It supplies more than 12,000 items, including cigarettes, candy, snacks, tobacco, groceries, automotive, beverages, health and beauty, paper, ice cream, chemicals, supplies and convenience foods. It supplies full-service restaurants and institutional foodservice customers with produce, fresh and frozen meats, dairy, dry goods, appetizers, breads, pastries, desserts, canned goods, chemicals, paper, supplies and smallwares.
John Norgaard, Farner-Bocken's chairman, said at the time of the initial announcement, "After a careful evaluation of potential partners to preserve the Farner-Bocken Co. 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.”
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