Vending

Performance Food Group acquiring Core-Mark

Image courtesy of Performance Food Group.

May 18, 2021

Performance Food Group Co., which owns Vistar, a national convenience services wholesale distributor, has agreed to acquire convenience store distributor Core-Mark in a stock and cash transaction, the companies announced in a press release.

Under the terms of the transaction, which has been unanimously approved by the board of directors of each company, Core-Mark shareholders will receive $23.875 per share in cash and 0.44 PFG shares for each Core-Mark share. The transaction values Core-Mark at approximately $2.5 billion, including Core-Mark's net debt. Upon closing of the transaction, Core-Mark shareholders will own approximately 13% of the combined company. Core-Mark expects to continue paying its current quarterly dividend through the completion of the transaction.

The transaction will create a convenience business within PFG's Vistar segment that will include the Core-Mark and Eby-Brown businesses.

The expanded convenience business will operate under the Core-Mark brand and will be headquartered in Westlake, Texas with Eby-Brown maintaining ongoing operations in Naperville, Illinois.

Scott McPherson will continue in his role as president and chief executive officer of Core-Mark, following closing of the transaction. Tom Wake will continue as president and chief executive officer of Eby-Brown, reporting to McPherson.

"The two organizations have similar cultures, which we expect will facilitate a smooth integration and transition process," George Holm, PFG chairman, president and CEO, said in the press release.

"On behalf of PFG's Vistar segment, I echo George's enthusiasm for this transaction," said Patrick Hagerty, executive vice president of PFG and CEO of Vistar. "Adding convenience store distribution in 2019 built up the core strength of our organization, providing another important avenue for growth. Bringing Core-Mark to PFG will continue this journey and complement our existing portfolio."

Core-Mark has approximately 7,500 employees and operates 32 distribution centers across the U.S. and Canada. Core-Mark services approximately 40,000 customer locations in all 50 states in the U.S., five Canadian provinces and two Canadian territories.