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SAN FRANCISCO -- Core-Mark Holding Co. Inc., a marketer of fresh and broad-line supply solutions to North America's convenience retail industry, completed its previously announced acquisition of Forrest City Grocery Co., the company announced.
"Our focus is on the customers of Forrest City and the ways we can bring value-added services to help them grow their sales and profits," said Michael Walsh, President and Chief Executive Officer of Core-Mark. "In the weeks ahead, we will be combining the hard work and dedication of the Forrest City Division team with Core-Mark's leading marketing programs and technology. Strategically, this merger enables us to increase our infrastructure into the very important Southeastern U.S. market."
Core-Mark purchased Forrest City for $66 million, which included approximately $43 million in assets. The company funded the purchase by combining cash on hand with borrowings under its $200 million revolving credit facility. The deal is accretive to net income beginning in 2011 and excludes approximately $2.5 million in start-up and conversion costs.