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Woman choosing a dairy products at supermarket. Reading product information
Woman choosing a dairy products at supermarket. Reading product information
Performance Food Group is buying Westlake’s Core-Mark, one of the region’s Fortune 500 headquarters, expanding the company’s convenience store business and adding about $17 billion to net sales.
PFG of Richmond, Va., which estimates it would be a $44 billion company after the transaction, will combine Core-Mark and its Eby-Brown unit into an expanded convenience store business that will retain the Core-Mark brand that will continue to be based in Westlake. Scott McPherson, the Core-Mark CEO, will retain his role as president and CEO of Core-Mark.
“We are excited to announce the strategic acquisition of Core-Mark and welcome the organization to Performance Food Group,” said George Holm, PFG chairman and CEO, said in announcing the deal Monday.
“Core-Mark is an outstanding company that we believe will significantly strengthen our business diversification and expansion into the convenience store channel.”
Under the transaction, which has been unanimously approved by the boards of both companies, Core-Mark shareholders will receive $23.875 per share in cash and 0.44 PFG shares for each Core-Mark share.
The transaction values Core-Mark at approximately $2.5 billion, including Core-Mark’s net debt. Upon closing of the transaction, Core-Mark shareholders will own approximately 13% of the combined company. Core-Mark expects to continue paying its current quarterly dividend through the completion of the transaction.
Core-Mark is one of the largest marketers of fresh, food 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 40,000 customer locations in the U.S. and Canada through 32 distribution centers. Core-Mark services traditional convenience stores, grocers, drug stores, mass merchants, liquor and specialty stores, and other stores that carry convenience products.
Core-Mark said May 10 it is in the process of hiring nearly 1,000 additional employees across the United States and Canada.
The company said it is particularly interested in hiring workers who were displaced from industries that were hit the hardest by the pandemic.
“As an essential business working throughout the pandemic, we saw first-hand that every member of our team is just that –– essential,” Jenn Hulett, chief human resources officer at Core-Mark, said in a release.
”We look forward to growing our team across all lines of business. Applicants looking to advance their careers or re-enter the workforce will have immediate and meaningful career opportunities.”
Core-Mark is hiring for upwards of 1,000 permanent positions across all lines of business, including Class A and CDL commercial drivers, driver helpers and multiple warehouse positions. All full-time positions come with comprehensive benefits (including healthcare, 401k, life insurance and more), and many come with signing bonuses and incentive pay.