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SOUTH SAN FRANCISCO — Core-Mark Holding Co. Inc. is building on its Midwest presence by entering into a definitive asset purchase agreement to acquire Carroll, Iowa-based Farner-Bocken Co.
The anticipated $190-million deal is subject to standard regulatory approvals, including applicable state licensing requirements for the sale of tobacco and other regulated products.
The acquisition is expected to be accretive within the first year following closing.
"We are excited to welcome the customers and employees of Farner-Bocken to the Core-Mark family. Both of our companies have built strong reputations in the marketplace with customers, employees and suppliers.This acquisition establishes a strong foothold in the Midwest and provides Core-Mark additional expertise in foodservice and fresh that has the potential to spread through our other divisions," said Thomas B. Perkins, president and CEO of Core-Mark.
"Under the continued leadership of Dean Onken and Paul Francis who will be named co-division presidents, we expect the Farner-Bocken team will continue to be a market leader in providing value added programs and excellent service to their customers," he added.
Third-generation family-held Farner-Bocken Co. was founded in 1939 and operates in 14 states. The company employs more than 1,000 members.
"After a careful evaluation of potential partners to preserve the Farner-Bocken Co. legacy, Core-Mark emerged as the obvious choice. Their commitment to customers and employees, along with their successful track record with previous acquisitions were the prevailing decision factors," said John Norgaard, Farner-Bocken's chairman. "Farner-Bocken and Core-Mark are both committed to exceeding customer expectations by offering exceptional service and complete retail solutions. Core-Mark values the relationships we have built over the years. Most importantly, they respect our culture, reputation and talented employees."
Weil, Gotshal & Manges LLP served as counsel to Core-Mark, and Davis, Brown, Koehn, Shors & Roberts, P.C. served as counsel to Farner-Bocken.
Core-Mark, based in South San Francisco, 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.