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Murphy USA, Core-Mark Renew Supply Deal

Retailer, distributor ink new five-year supply agreement
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Photograph courtesy of Core-Mark

EL DORADO, Ark., and WESTLAKE, Texas — Murphy USA Inc. and Core-Mark Holding Co. Inc. have entered into a new five-year supply agreement whereby Core-Mark will continue to serve as the primary wholesale distributor to Murphy USA, delivering more than 75% of the merchandise sold in its stores.

“We are confident the Core-Mark team will continue to be an excellent strategic partner for Murphy USA, and we look forward to working together to achieve our mutual goals of profitable growth, efficient operations and superior execution for our stores and our customers,” said Andrew Clyde, president and CEO of Murphy USA.

In December, Murphy USA agreed to acquire QuickChek Corp., Whitehouse Station, N.J., in an all-cash transaction for $645 million. The acquisition will help Murphy USA enhance its food and beverage offer, it said. The company expects the deal with Core-Mark to also benefit the business by improving and optimizing its food and beverage offer and cost of goods, Clyde said.

“We are committed to helping Murphy USA drive growth in sales and margins under this new agreement, strategically aligned to enable both Murphy USA and Core-Mark to benefit from their strategic focus on expanding their food and fresh offering,” said Scott McPherson, president and CEO of Core-Mark. “We are committed to continuing to serve Murphy USA stores with operational excellence and an innovative approach.”

Based in El Dorado, Ark., Murphy USA provides fuel and convenience-store merchandise through more than 1,500 gas stations in 25 states, primarily in the Southwest, Southeast and Midwest. Most of Murphy USA’s sites are located adjacent to Walmart stores. The company also markets gasoline and other products at standalone stores under the Murphy Express brand.

Core-Mark, based in Westlake, Texas, is a major marketer of fresh food and broad-line supply solutions to the convenience retail industry in North America. Founded in 1888, it offers a range of products, marketing programs and technology solutions to approximately 41,000 customer sites in the United States and Canada through 32 distribution centers. Core-Mark services traditional c-store retailers, grocers, drug, liquor and specialty stores and other stores that carry convenience products.

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