SOUTH SAN FRANCISCO, Calif. -- Core-Mark Holding Co. Inc., one of the largest North American distributors to the convenience retail industry, said that it has signed a definitive agreement to acquire substantially all of the assets of Auburn Merchandise Distributors Inc. for approximately $28 million. The assets being purchased include primarily accounts receivable, inventory and fixed assets. This agreement does not provide for the purchase of real property or significant liabilities.
Core-Mark expects to fund the transaction from excess availability under its $250 million revolving credit [image-nocss] facility and from working capital that will be generated after the close. The deal is expected to close in June and be accretive in 2008 excluding approximately $1.4 million in startup and conversion costs.
Auburn has historically generated annual sales of approximately $260 million and is well positioned to service a multi-state geography, complementing the Core-Mark distribution footprint in the Northeast marketplace.
Established in 1983 in Auburn, Mass., and now located in Whitinsville, Mass., Auburn Merchandise Distributors supplies candy, groceries, cigarettes and tobacco, snacks, juices, food service, store supplies, frozen food, deli, dairy, automotive, health and beauty care and general merchandise to more than 4,000 customers in Massachusetts, Rhode Island, New Hampshire, Connecticut and Maine.
South San Francisco, Calif.-based Core-Mark is one of the largest broad-line, full-service wholesale distributors of packaged consumer products 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 22,000 retail locations in 45 states and five Canadian provinces through 25 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.
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