A Richmond, Virg. foodservice distributor announced today (Tuesday) they will be purchasing Core-Mark Holding Company, a marketer of fresh food and broad-line supply solutions to convenience stores. The approximately $2.5 billion agreement will have Performance Food Group (PFG) acquiring Core-Mark in a stock and cash transaction. It was at about this same time in 2017 that Core-Mark Holding Company, Inc. announced the asset purchase of Carroll’s Farner-Bocken Company for an estimated $190 million. The board of directors from both organizations have unanimously agreed to $23.875 per share in cash to shareholders with an additional .44 PFG shares for each Core-Mark share, giving Core-Mark shareholders roughly 13 percent ownership of the combined company. PFG is predicting the expansion in geographic reach and market diversification into the growing convenience store channels will add an estimated $17 billion to their net sales, bringing total PFG pro-forma LTM net sales to approximately $44 billion. Core-Mark has approximately 7,500 employees operating out of 32 distribution centers that serve more than 40,000 customers in the United States and Canada. PFG has a nationwide network of 100 distribution facilities and delivers products to over 200,000 locations. This transaction is anticipated to close in the first half of 2022.
