logo
  Join        Login             Stock Quote

Core-Mark Holding (CORE) To Buy Convenience Wholesaler J.T. Davenport & Sons

 December 10, 2012 10:43 AM
 


(By Balaseshan) Core-Mark Holding Co. Inc. (NASDAQ: CORE), a marketer of fresh and supply services to the convenience retail industry, said it has agreed to buy convenience wholesaler J.T. Davenport & Sons Inc. located in Sanford, North Carolina.

The purchase price is estimated to be about $45 million, predicated on the value of certain assets and liabilities to be determined at closing. No debt is being assumed in this transaction.

Core-Mark will fund this purchase with a combination of cash on hand and borrowings under its $200 million revolving credit facility.

The deal is expected to be accretive in 2013, excluding about $2.5 million in start-up and conversion costs, a portion of which will be incurred in 2012.

[Related -Dividend Scan: CORE, SCL, SVU, WCN, BGS, EBTC, VISA, DNB]

The transaction is structured as an all-cash stock acquisition pursuant to which Davenport will become an indirect subsidiary of Core-Mark. Davenport was ranked as the 15th largest convenience wholesaler by Convenience Store News, with 2011 revenues reaching about $600 million.

Davenport engages in the wholesale distribution of convenience groceries, candies, tobacco, food service products, health and beauty products, and general merchandise.

Davenport established its presence in Sanford, North Carolina in 1917, the company services customers in eight states and presently employs about 340 people, servicing about 2,000 convenience stores. The deal is expected to close by the end of 2012.

[Related -Sector Scan: Food Retailers And Wholesalers, And Tires Sectors Rise, Airlines Industry Loses]

Founded in 1888, Core-Mark offers a full range of products, marketing programs and technology solutions to about 29,000 customer locations in the U.S. and Canada through 27 distribution centers (excluding two distribution facilities the company operates as a third party logistics provider).

CORE is trading down 0.39% at $47.06 on Monday. The stock has been trading between $34.78 and $50.56 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageLadenburg Thalmann Financial Services (NYSEMKT:LTS): Heavy, Durable Insider Buying

Ahh, but any worries over price levels didn’t stop multiple insiders at Ladenburg Thalmann Financial read on...

article imageInternational Business Machines Corp. (IBM) Q2 Earnings Preview: Small Beat and Pop

International Business Machines Corp. (NYSE:IBM) will host a conference call Wednesday, Jul. 16, 2014 at read on...

article imageGoogle Inc. (GOOGL) Q2 Earnings Preview: A Few Pennies Either Way Make a Big Difference.

Google Inc. (NASDAQ:GOOGL) will hold its quarterly conference call to discuss second quarter 2014 financial read on...

article image19 Companies That Could Beat Earnings and Pop on Price Next Week

Using iStock’s proprietary iEstimates model, we have identified 19 publicly traded companies that could read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.