RICHMOND, Va. — Performance Food Group Co. has completed the acquisition of Core-Mark Holding Co. Inc. The transaction creates a convenience business within PFG’s Vistar segment that includes the Core-Mark and Eby-Brown businesses.
The acquisition expands PFG’s geographic reach and market diversification into the convenience store channel. It also builds on PFG’s current foodservice focus within the convenience channel, adding additional customers and product offerings, particularly in the fresh food space. PFG expects to achieve annual run-rate net cost synergies of approximately $40 million by the third full year after closing.
The expanded convenience business will continue to operate under Core-Mark and will keep its Westlake, Texas, headquarters, with Eby-Brown maintaining ongoing operations in Naperville, Ill. Scott McPherson will continue in his role as president and CEO of Core-Mark, and Tom Wake will continue as president and CEO of Eby-Brown, reporting to McPherson.
“We are very pleased to close this acquisition and welcome Core-Mark’s many talented associates to PFG,” said George Holm, PFG chairman, president and CEO. “Core-Mark has proven itself to be a leader in convenience distribution, and we are thrilled to add their leadership strength to the strong senior talent already driving PFG’s success in the foodservice and convenience distribution industries. We are excited to begin the integration process and start to service Core-Mark’s customers with the combined suite of brands. By adding PFG’s food and foodservice capabilities to Core-Mark’s solid platform, we expect to quickly begin to unlock the transaction value.”
The addition of Core-Mark brings one of the largest wholesale distributors to the convenience retail industry in North America into PFG’s family of companies, with approximately $17 billion in net sales. The company has approximately 8,000 employees and operates 32 distribution centers across the United States and Canada. Core-Mark services approximately 41,000 customer locations in all 50 U.S. states and five Canadian provinces.
PFG also has appointed Laura Flanagan to serve as an independent director on its board of directors. Flanagan, 53, has served as a director of Core-Mark since June 2016. This appointment expands PFG’s board to 12 directors.
Richmond, Va.-based PFG markets and delivers food and related products to more than 250,000 locations including independent and chain restaurants, schools, business and industry locations, healthcare facilities, vending distributors, office coffee service distributors, big box retailers, theaters and convenience stores.