Acquisitions Open Big Doors for Fleming
Fleming reports that it is acquiring privately-held companies Core-Mark International, Inc. and Head Distributing, two convenience store distributors. With approximately $22 billion in projected 2003 revenue, Fleming furthers its number-one position as a supplier of consumer package goods to the U.S. retail industry.
Core-Mark, a leading piece-pick distributor to convenience stores and other retail customers in western North America, had 2001 sales of $3.4 billion. Core-Mark is known for its excellent management team and customer-focused associates. It serves nearly 30,000 locations from its network of 19 distribution centers. Current Core-Mark customers include Circle K, Phillips Petroleum, ARCO AM-PM, EZ Mart, Chevron and Shell dealers, 7-11 franchisees, Long’s Drug Stores, Albertson’s, and Safeway.
Head Distributing, a Georgia-based distributor, operates two piece-pick distribution centers and serves 3,000 retail locations in six southeastern states. Head Distributing’s fiscal 2001 sales were approximately $350 million. Head’s largest customer is Ahold’s convenience operations.
Moderator Comment: Will Fleming’s historic grocery
expertise be of particular benefit to convenience retailers as they seek to
grow sales of grocery and ready-to-eat items as claimed by the wholesaler?
Mark Hansen and company have a plan for convenience stores
and they are sticking to it. We are sure that McLane has noticed. [George
Anderson – Moderator]