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SOUTH SAN FRANCISCO — Core-Mark Holding Co. Inc. closed its acquisition of Pine State Convenience, a division of Gardiner, Maine-based Pine State Trading Co. The adjusted purchase price was approximately $88 million, paid in cash, and is subject to post-closing adjustments.
"We are extremely pleased to welcome the customers and employees of Pine State Convenience to the Core-Mark family," stated Core-Mark President and CEO Thomas B. Perkins when the purchase was announced. "Both of our companies have experienced great success over the past decade largely due to our reputations in the marketplace with customers, employees and suppliers."
Core-Mark funded the acquisition through a combination of cash on hand and borrowings under its credit facility. It expects to spend approximately $1.6 million in start-up and due diligence costs in 2016, with another $1.5 million in system conversion costs incurred during 2017.
Additionally, Core-Mark reaffirmed capital expenditure estimates of approximately $50 million for 2016, which will be utilized for expansion projects, such as a new warehouse in Las Vegas, and maintenance investments.
Core-Mark offers a full range of products, marketing programs and technology solutions to approximately 35,000 customer locations in the United States and Canada through 29 distribution centers.