Fleming Companies acquires two major convenience store distributors
May 2, 2002 12:00 PM
The Fleming Companies, Dallas TX, has begun acquisition of two privately held wholesale grocers that concentrate on distribution to convenience stores. Core-Mark International will increase the Fleming presence in Western states, and Head Distributing will improve service to retailers in the Southeast. With projected revenue of $22 billion in 2003, Fleming has enhanced its position as the number one grocery wholesaler in nation with these acquisitions. In 2001, Core-Mark had sales of $3.4 billion and served 30,000 customer locations from 19 distribution centers. Head Distributing generated roughly $350 million in 2001 with two distribution centers serving 3,000 retail locations. The combined purchase price for Core-Mark and Head Distributing will be approximately $430 million in cash and assumption of debt.
