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The purchase price on the closing date, Dec. 17, was $38 million, and is subject to a 120-day adjustment period. Core-Mark paid $34 million in cash at the closing, with the remainder to come via an indemnification holdback.
According to Core-Mark, its acquisition of J.T. Davenport & Sons will be accretive to 2013 earnings, minus start-up and conversion costs.
Core-Mark is one of the largest marketers of fresh and broad-line supply solutions to the North American convenience retail industry. Founded in 1888, it serves approximately 31,000 customer locations in the United States and Canada.
As CSNews Online previously reported, Core-Mark announced on Dec. 10 it would acquire J.T. Davenport & Sons. Sanford, N.C.-based J.T. Davenport & Sons was ranked this year as the 15th largest convenience wholesaler by Convenience Store News, with 2011 revenues reaching approximately $600 million. The owners, management and employees of J.T. Davenport built the company into a leading independent wholesale distributor in the Southeast, serving 2,000 convenience stores.
"We are extremely pleased to welcome Mark Davenport and his company to the Core-Mark family," J. Michael Walsh, president and CEO of Core-Mark, said in a statement last week. "For decades, J.T. Davenport has built a well-deserved reputation as a top-tier distributor in the industry. I look forward to Mark's leadership in creating customer solutions by combining J.T. Davenport's best practices and market presence with Core-Mark's marketing strategies and technology."
J.T. Davenport & Sons will become a wholly owned, indirect subsidiary of Core-Mark.