US-based food retailer Performance Food Group (PFG) has acquired Core-Mark, a wholesale distributor to the convenience retail industry.
The stock and cash deal is reported to be valued at $2.5bn.
Core-Mark operates 32 distribution centres across the US and Canada, as well as around 41,000 customer locations across all 50 US states and five Canadian provinces.
The company is based in West Lake, Texas, and has around 8,000 employees.
Following the acquisition, PFG will retain Core-Mark’s current management team led by Scott McPherson, who will continue to serve as the company’s president and CEO.
PFG chairman, president and CEO George Holm said: “We are very pleased to close this acquisition and welcome Core-Mark’s many talented associates to PFG.
“Core-Mark has proven itself to be a leader in convenience distribution and we are thrilled to add their leadership strength to the strong senior talent already driving PFG’s success in the foodservice and convenience distribution industries.
“We are excited to begin the integration process and start to service Core-Mark’s customers with the combined suite of brands.
“By adding PFG’s food and foodservice capabilities to Core-Mark’s solid platform, we expect to quickly begin to unlock the transaction value.”
The acquisition of Core-Mark is intended to expedite PFG’s diversification and expand its geographic presence in the convenience store channel.
It is expected to build on PFG’s current foodservice focus within this channel by adding customers and product offerings, with an emphasis on the fresh food space.
The expanded business will continue to operate under the Core-Mark banner.
In a separate development, PFG has appointed Laura Flanagan as an independent director on its Board of Directors, bringing its total number of directors to 12.
Ms Flanagan has been serving as a director of Core-Mark since June 2016.