Core-Mark, Klein Sign Deal
Distributor will incorporate candy company into existing network
SOUTH SAN FRANCISCO, Calif. -- Core-Mark Holding Co. Inc., one of the largest North American distributors to the convenience retail industry, officially announced that it has signed a definitive agreement to acquire substantially all of the assets of Klein Candy Co. LP for approximately $65 million dollars.
Core-Mark expects to fund the transaction from excess availability under its $250 million revolving credit facility. The deal is expected to close later this month.
As reported in CSP Daily News in late April, Core-Mark will [image-nocss] incorporate the Klein operations into its existing distribution network, creating a national distribution capacity.
Klein and Core-Mark are committed to continuing to provide the same level of service to the Klein customer base. We are thrilled to join Core-Mark with its tradition of customer service dedication and believe the joining of forces with Core-Mark will serve the Klein customers very well, said Steven Dressler, CEO of Klein.
We are pleased to have this definitive agreement signed and be well on our way to the close of this very exciting next step in Core-Mark's evolution, said Michael Walsh, CEO of Core-Mark, South San Francisco, Calif. We believe this is a critical step in providing national service as part of our quest to be the leading distributor to the convenience industry in North America.
Core-Mark provides distribution and logistics services as well as marketing programs to approximately 20,000 retail locations in 38 states and five Canadian provinces through 24 distribution centers, two of which Core-Mark operate 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.
Klein Candy, trading as Klein Wholesale Distributors, is a full-service master and convenience store distributor of, among other things, cigarettes, tobacco, groceries (including frozen and refrigerated), HBC, candy, foodservice, beverages, paper products and general merchandise. Klein currently stamps cigarettes, provides full service and delivers products to nine states, including Pennsylvania, Michigan, New York, New Jersey, Connecticut, Maryland, Delaware, Washington D.C., and Virginia.