Mark Completes Deal To Acquire Forrest City Grocery

Core-Mark Holding Company, Inc., one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America, announced recently that it has closed its previously announced acquisition of Forrest City Grocery Company (FCGC).

The final purchase price was $66M including approximately $43M in assets. Core-Mark funded this purchase with a combination of cash on hand and borrowings under its $200M revolving credit facility. The deal is accretive to net income beginning in 2011, excluding approximately $2.5M in start-up and conversion costs.

"Our focus is on the customers of Forrest City and the ways we can bring value-added services to help them grow their sales and profits. In the weeks ahead, we will be combining the hard work and dedication of the Forrest City Division team with Core-Mark's leading marketing programs and technology. Strategically, this merger enables us to increase our infrastructure into the very important Southeastern U.S. market," said Michael Walsh, President and Chief Executive Officer of Core-Mark.

Core-Mark
Core-Mark is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. Founded in 1888, Core-Mark offers a full range of products, marketing programs and technology solutions to approximately 28,000 customer locations in the U.S. and Canada through 25 distribution centers (excluding two distribution facilities the Company operates as a third party logistics provider). Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry convenience products. For more information, visit www.core-mark.com.

SOURCE: Core-Mark Holding Company, Inc.