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SAN FRANCISCO -- A definite agreement was reached between leading convenience store retail distributor Core-Mark Holding Co. Inc. to acquire principal assets of Auburn Merchandise Distributors Inc. for a disclosed sum of $28 million.
The deal includes primarily accounts receivable, inventory and fixed assets. According to a released statement, the standing agreement does not provide for the purchase of real property or significant liabilities.
The deal is expected to close in June and be accretive in 2008 excluding approximately $1.4 million in start up and conversion costs.
"Auburn's history of putting the customer first with fast, flexible service resonates highly with our culture and business practices," Scott McPherson, senior vice president of Core-Mark, said in a released statement. "We are very impressed with the Auburn team and believe that this synergistic combination will result in continued great service with more marketing programs and products to help Auburn's customers grow their sales."
On average, Auburn generates annual sales of approximately $260 million and was attractive as it is well positioned to service a multi-state geography, which will compliment Core-Mark's existing distribution footprint in the Northeast marketplace.
"We are very pleased to be joining the Core-Mark family and look forward to being part of a company with such a great reputation for customer service and a history of success," Bill Potvin, president of Auburn Merchandise Distributors, said in a released statement. "We believe that together with Core-Mark we will have a team very well suited to serve the Auburn customers."