Dallas-based distribution giant Fleming has completed its acquisition of Core-Mark International.
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The company said that the deal represents the culmination of its long-standing strategy to create a national piece-pick network that complements its national case-pick and flow-through network.
Mark Hansen, Fleming chairman and CEO, commented: “Fleming has created a supplier network capable of efficiently distributing products by the individual item, by the case, by the pallet, or by the truckload, to any retail format.
“The acquisition of Core-Mark continues our drive to amass scale in an industry that benefits greatly from size. It further diversifies our customer base across a wide spectrum of retail formats. Additionally, it presents meaningful sales opportunities for our customers, our vendors and our company.”
Concurrent with the completion of the Core-Mark acquisition, Fleming has completed its offering of US$200m of 9.25% Senior Notes due 2010, and 8 million shares of its common stock, plus an additional 1.2 million shares exercised by the underwriters under their over-allotment option.
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By GlobalDataAdditionally, the company entered into a new US$975m bank credit facility which consists of a US$550m revolving facility and a US$425m B term loan. Pro-forma for these transactions, Fleming’s total share count is approximately 53.8 million shares, and its debt-to-total capital ratio improves from about 79% to about 76% at the end of the Q1. The company will have no material maturities of debt until 2007.
