SOUTH SAN FRANCISCO, Calif. -- Core-Mark Holding Co. Inc., one of the largest marketers of fresh and broad-line supply solutions to the retail convenience-store industry in North America, has closed its previously announced acquisition of Pine State Convenience, a division of Pine State Trading Co., Gardiner, Maine.
The adjusted purchase price was approximately $88 million, paid in cash and subject to post-closing adjustments.
Core-Mark funded the purchase with a combination of cash on hand and borrowings under its credit facility. The company expects to spend approximately $1.6 million in startup and due-diligence costs in 2016 and expects to incur another $1.5 million in system conversion costs during 2017 in connection with the transaction, the company said.
As a result of closing the acquisition, the company raised its net sales, diluted EPS and adjusted EBITDA guidance for full-year 2016. The company now expects annual net sales for 2016 to be $14 billion to $14.5 billion, up from $13.4 billion to $13.8 billion. It expects adjusted EBITDA for 2016 to be $157 million to $164 million, up from $153 million to $160 million. Key assumptions remain unchanged, said the company.
Core-Mark also reaffirmed capital expenditure estimates for 2016 of approximately $50 million, which it said it will use for expansion projects, including a new warehouse in Las Vegas, and maintenance investments.
South San Francisco, Calif.-based Core-Mark is one of the largest marketers of fresh and broad-line supply solutions to the convenience-store industry in North America. Founded in 1888, it offers a full range of products, marketing programs and technology solutions to approximately 44,000 customer locations in the United States and Canada through 29 distribution centers. Core-Mark services traditional convenience-store retailers, grocers, drug, liquor and specialty stores and other stores that carry convenience products.
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