SOUTH SAN FRANCISCO, Calif. -- Core-Mark Holding Co. Inc., one of the largest marketers of fresh and broad-line supply solutions to the convenience-store industry in North America, has signed a definitive asset purchase agreement to acquire the assets of Pine State Convenience, a division of Pine State Trading Co., based in Gardiner, Maine.
With sales of nearly $1 billion, Pine State Convenience is a leading c-store distributor in the Northeast. The division serves more than 5,000 customers across seven states and employs more than 500 people.
The companies estimated the purchase price to be approximately $112 million, depending on the value of certain assets at closing. Core-Mark is assuming no debt or significant liabilities in the transaction; it will fund the purchase with a combination of cash on hand and borrowings under its credit facility.
Core-Mark said it expects to invest approximately $3.1 million in startup, due diligence and conversion costs in connection with the transaction.
The closing of this deal is subject to standard regulatory approvals, including applicable state licensing requirements for the sale of tobacco and other regulated products.
Pine State’s managing partner, Keith Canning, will be president of the new entity, Pine State Convenience, a division of Core-Mark. All employees dedicated to the convenience store division will be retained by Core-Mark, which will continue to operate out of the Gardiner facility.
Pine State Trading Co.'s other four divisions--Pine State Beverage, Pine State Spirits, Pine State Vending and Town & Country Foods--will continue under the current family ownership and management of CEO Nick Alberding and managing partner Gena Canning, out of newly leased office space in Gardiner.
"We are extremely pleased to welcome the customers and employees of Pine State Convenience to the Core-Mark family. Both of our companies have experienced great success over the past decade largely due to our reputations in the marketplace with customers, employees and suppliers. This acquisition affords us the opportunity to widen our geographic footprint in an area where we have a limited presence and offer Pine State Convenience customers a new spectrum of products and marketing programs that have brought our own retailers success," said Thomas B. Perkins, president and CEO of Core-Mark. "Under the continued leadership of Keith Canning, who has accepted the role as division president, we expect great results as we merge our shared cultures, values, and focus on the customer."
"Core-Mark was the obvious choice to continue our legacy of helping our convenience store customers build their respective businesses," said Alberding. "Pine State and Core-Mark are both committed to exceeding customer expectations while offering exceptional service and complete retail solutions. In addition, Core-Mark values the relationships we have built over the years, and most importantly, respects our culture, as well as our experienced and talented employees."
South San Francisco, Calif.-based Core-Mark offers a full range of products, marketing programs and technology solutions to more than 38,000 customer locations in the United States and Canada through 28 distribution centers. It services traditional convenience-store retailers, grocers, drug, liquor and specialty stores, and other stores that carry convenience products.