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 entered into a definitive asset purchase agreement to acquire substantially all of the assets of Farner-Bocken Co.
The purchase price is estimated to be approximately $190 million, based on the value of certain assets to be determined at closing. Core-Mark is assuming no debt or significant liabilities in the transaction. Core-Mark will fund the purchase with borrowings under its credit facility. The closing of this deal is subject to standard regulatory approvals and state licensing requirements for the sale of tobacco and other regulated products.
Carroll, Iowa-based Farner-Bocken is a family owned distributor of convenience foodservice products serving about 6,000 customers in 14 Midwestern 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.
It serves its customers from a 430,000-square-foot facility in Carroll, and it has more than 1,000 employees.
"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 Core-Mark. "Under the continued leadership of Dean Onken and Paul Francis, who will be 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."
John Norgaard, Farner-Bocken's chairman, said, "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.”
South San Francisco, Calif.-based Core-Mark offers a full range of products, marketing programs and technology solutions to more thanr 42,000 customer locations in the United States and Canada through 30 distribution centers. It services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry convenience products.
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