Core-Mark is acquiring the industry leading “supplier of choice” for the northeast.
A Definitive Asset Purchase Agreement has been signed, stating that Core-Mark Holding Co. will acquire all of the assets of Pine State Convenience. Pine State Convenience is a division of Pine State Trading Co., located in Gardiner, Maine.
The transaction is structured as an all-cash asset acquisition.
The purchase price is estimated to be approximately $112 million, predicated on the value of certain assets to be determined at closing. No debt or significant liabilities are being assumed in the transaction. Core-Mark will fund the purchase with a combination of cash on hand and borrowings under its credit facility. The closing of this deal is subject to standard regulatory approvals, including HSR and applicable state licensing requirements for the sale of tobacco and other regulated products. The acquisition is expected to be accretive year one. The company expects to invest approximately $3.1 million in start-up, due diligence and conversion costs in connection with the transaction.
Pine State Convenience has long been a leader in the industry and is known as a “supplier of choice” in the northeast. The division employs over 500 people, all of whom have contributed to building an organization that has grown its sales to nearly $1 billion through providing exemplary customer service and advocating vendor consolidation and data driven selling.
“We are extremely pleased to welcome the customers and employees of Pine State Convenience to the Core-Mark family. 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. This acquisition affords us the opportunity to widen our geographic footprint in an area where we have a limited presence and offer Pine State Convenience customers a new spectrum of products and marketing programs that have brought our own retailers success,” said Thomas Perkins, president and CEO of Core-Mark. “Under the continued leadership of Keith Canning who has accepted the role as division president, we expect great results as we merge our shared cultures, values, and focus on the customer.”
“Core-Mark was the obvious choice to continue our legacy of helping our convenience store customers build their respective businesses,” said Nick Alberding, CEO of Pine State Trading Co. “Pine State and Core-Mark are both committed to exceeding customer expectations while offering exceptional service and complete retail solutions. In addition, Core-Mark values the relationships we have built over the years, and most importantly, respects our culture, as well as our experienced and talented employees.”
“I am honored to lead this team of dedicated employees who share my passion of delivering innovative solutions and exceptional service to our customers and suppliers. Core-Mark’s investment in Maine will bring advanced technology and proven marketing programs that will provide new opportunities to help our customers continue to grow,” explained Keith Canning.