The transaction is structured as an all-cash stock acquisition pursuant to which Davenport will become a wholly-owned, indirect subsidiary of Core-Mark.
Davenport had 2011 revenues reaching approximately $600m. The purchase price is estimated to be approximately $45m, 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 $200m revolving credit facility.
The deal is expected to close by the end of 2012 and is expected to be accretive in 2013, excluding approximately $2.5m in start-up and conversion costs, a portion of which will be incurred in 2012.
Source: Core-Mark
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