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SAN FRANCISCO -- The board of directors for Core-Mark Holding Co. has given the green light for the company to repurchase up to $30 million of its common stock.
"The board's action is a clear sign of its continued confidence in Core-Mark's ability to consistently generate free cash flow," said Michael Walsh, president and chief executive officer of Core-Mark. "While we continue to selectively invest in growth initiatives, including attractive acquisitions that meet our high standards for appropriate returns, we have the financial capacity to also fund share repurchases, which creates additional shareholder value."
Under the new program, Core-Mark is authorized to repurchase shares, from time to time, through solicited or unsolicited transactions in the open market, in privately negotiated transactions or pursuant to a Rule 10b5-1 plan. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors. This new program replaces the company's previous share repurchase program.
The move comes three weeks after Core-Mark finalized its acquisition of Forrest City Grocery Co. The $66-million deal included about $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, as CSNews Online reported on May 3.