Core-Mark Closes Deal to Buy JT Davenport & Sons
Core-Mark Holding Company, Inc. (NASDAQ: CORE), one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America, announced today that it has closed its previously announced acquisition of J.T. Davenport & Sons, Inc. effective December 17, 2012. The purchase price at closing was approximately $38 million and is subject to a 120 day adjustment period. The purchase price was based on the value of certain assets, liabilities and a premium, all of which is subject to a fair value assessment. No debt or real property was assumed in this transaction, and Core-Mark funded $34 million at closing with a $4 million indemnification holdback. The deal is expected to be accretive in 2013, excluding approximately $2.5 million in start-up and conversion costs, a portion of which will be incurred in 2012.
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