Subject: PFG Announces Acquisition of Core-Mark
A Message from George Holm, PFG Chairman, President & CEO
Today we announced that Performance Food Group signed a definitive agreement to acquire Core-Mark, one of North Americas largest marketers of food, fresh
and broadline supply solutions to the convenience retail industry. I am very excited about our companys continuing expansion and adding the many strengths Core-Mark will bring to our business.
The acquisition is a stock and cash transaction, valuing Core-Mark at approximately $2.5 billion, including Core-Marks net debt. It will add
approximately $17 billion to net sales, resulting in total PFG pro-forma net sales of approximately $44 billion. For the first time, we will be expanding our business beyond U.S. borders. Core-Mark
services about 40,000 customer locations in all 50 states and in five Canadian provinces and two Canadian territories from 32 distribution centers.
Pat
Hagerty, Vistars CEO, will welcome Core-Mark into PFGs Vistar operating segment, building on the valuable experience we already have in this space after adding Eby-Brown to our family of companies
in 2019. Thanks to Eby-Brown President Tom Wake and his dedicated team, PFGs entry into the channel has been successful, and were ready to keep growing. Weve found success with our brands and
foodservice expertise in the convenience channel with Eby, and the addition of Core-Mark will offer even more opportunities for this type of collaboration in the
prepared/made-to-order foodservice market.
When PFG looks at
opportunities, the cultural fit is always a key factor in our decision. I am impressed with Core-Marks experienced senior leadership team and how its 7,500 highly-skilled associates bring to life a strong customer-centric philosophy and
commitment to customer success just like you do.
The transaction will create a
best-in-class convenience business within PFGs 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. Core-Marks Scott McPherson
will continue as President and Chief Executive Officer of Core-Mark, following closing of the transaction. Tom will continue as President and CEO of Eby-Brown, reporting to Scott.
Founded more than 130 years ago, Core-Mark offers a full range of products, marketing programs and technology solutions. It services traditional convenience
retailers, grocers, drug stores, mass merchants, liquor and specialty stores, and other stores that carry convenience products. Core-Mark is excited about innovation possibilities we can bring to the convenience industry together and the wider range
of products our customers will have access to, particularly in the fresh food space. We are too.
This transaction combines Core-Marks scale and
operational excellence with PFGs strength and capabilities in convenience and foodservice. We expect it to close in the first half of calendar 2022, subject to U.S. federal antitrust clearance, Core-Mark shareholder approval and other
customary closing conditions.
PFG is positioned to take advantage of growth opportunities like this because of your valued contributions every day. Thank
you for all you do!
Best,
You can find more details in our news release and will hear more as we work toward closing.